VENDOR PERFORMANCE MANAGEMENT

Many organisations rightly focus their resources on the buying process for important goods and services.

Unfortunately, after contract signature, many then revert to adhoc management processes, lack the skills to effectively manage suppliers or simply have too much workload.

Implementing a framework of VPM measures will trigger five areas of benefit:

   1. Bringing savings directly to the bottom line, identifying overcharges or where services are no longer required
   2. Exposing risk areas early and enable mitigating actions to be taken
   3. Controlling scope creep, which can quickly increase costs
   4. Maintaining performance and service delivery from your supplier, which can deteriorate if left alone
   5. Providing a chance to exploit further savings and benefits from supplier innovation

Challenges

In a world where evermore IT is being done by third parties, it makes sense to optimise your abilities in Vendor Performance Management.
Here is a list of questions to answer, to see if VPM will be of use to your organisation:-

1. Do you have any monopoly or near-monopoly suppliers?
2. Do you have a supplier with multiple contracts across your organisation, but no consolidated approach?
3. Do you have a supplier that under performs, or has been in breach of Contract / SoW terms more than once?
4. Are any of your suppliers in long-term relationships with your competitors?
5. Are you dependent on a supplier, but contract terms favour them (often ‘legacy' contracts)?
6. Do you have a supplier with a risky financial position?
7. Do you have frequent invoicing / payment disputes with any suppliers?
8. Do you have a supplier's contract that has been allowed to auto-renew for past 2 yrs or more without review
9. Would you benefit from knowing more about supplier's product development Roadmap ?
10. Do you frequently have to micro-manage any supplier relationships?

If you've answered yes to three or more, VPM will be of value, please read on see the practical help we can provide.

We will

• Provide staff training in VPM, through our unique one day course. We can also run this inhouse and on your sites
• Assess your current VPM processes and where improvement will bring the most value
• Help you to implement the new processes and policies to get you up and running