In this case study, WGroup delivers a winning vendor management strategy to global entertainment, gaming, and hospitality company. In order to deliver favorable results for the comapny, WGroup conducted an objective assessment of the company’s existing vendor management capabilities, processes, and policies—and devise both a short-term and long-term vendor management strategy. The goal: to conduct an objective assessment of the company’s existing vendor management capabilities, processes, and policies—and devise both a short-term and long-term vendor management strategy.

1. Opportunity
Like many large, successful enterprises,
the global entertainment, gaming,
and hospitality company outsourced
the management of some its IT
infrastructure services. However, over
the course of the contract, it became
clear to the company that they needed
a better way to manage this large IT
vendor—and establish an overarching
strategy for managing vendors in
general. In particular, the company
realized that its vendor management
responsibilities were not well defined.
Moreover, there was no one individual
or department in charge of managing
vendors, with responsibilities and
contracts spread across the organization.
As a result, when a problem arose, it
was often unclear whose responsibility
it was and time, resources, and
money were being wasted.
To help it understand and better
manage its vendor relationships, and
come up with a long-term vendor
management strategy, the company
reached out to WGroup, an expert in
vendor management and outsourcing,
as well as IT and business operations.
Approach
WGroup spent the first three to four
weeks of the three-month engagement
doing discovery. It dispatched a
team of experienced IT and vendor
management consultants to interview
key personnel within the global
entertainment, gaming, and hospital
company’s IT organization, as well as
other areas within the organization
where vendor management
responsibilities resided, such as
the Procurement, Legal, and Risk/
Compliance departments. Consultants
also met with representatives from
several of the company’s strategic
vendors.The goal: to conduct an
objective assessment of the company’s
existing vendor management
capabilities, processes, and policies
—and devise both a short-term and
long-term vendor management strategy.
After analyzing the data, WGroup
presented its findings to the global
entertainment, gaming, and hospitality
company. The consultants showed
executive leadership the impact
the company’s current way of
managing vendors was having on
the organization—and compared
them to industry best practices.
Insights and Advice
One of the things that quickly became
apparent to the WGroup team was
that the global entertainment, gaming,
and hospitality company did not have
an effective management structure
Drive Your Business
Vendor Management
Strategy
WGroup Delivers a Winning Vendor Management
Strategy to Global Entertainment, Gaming, and
Hospitality Company
Case Study | ENTERTAINMENT, GAMING & HOSPITALITY
1
The goal: to conduct an
objective assessment
of the company’s existing
vendor management
capabilities, processes,
and policies—and
devise both a short-term
and long-term vendor
management strategy.

2. for dealing with vendors. Instead of
handling vendors through a centralized
vendor management office (VMO),
vendor management duties were
parceled out to various individuals in
different departments. At the same
time, WGroup consultants recognized
that several things needed to happen
before the establishment of a VMO.
In response, WGroup developed a
three-phase vendor management
strategy, which took into account the
company’s current budget, staffing,
and organizational structure.
For Phase One, WGroup provided
the global entertainment, gaming, and
hospitality company with a governance
structure to help it immediately deal
with its IT infrastructure services
vendor (establishing a committee
and reporting guidelines). Phase Two
involved looking at core processes
and policies, determining which
processes and policies needed to change
in order to better manage vendor
relationships, getting those processes
in place, and then adhering to them.
And Phase Three would involve
establishing a VMO and optimizing
the processes designated in Phase Two.
Results
The vendor management strategy was
designed such that it addressed the
highest priority (improved control
over the company’s relationship with
its IT infrastructure services vendor
and ensuring the vendor’s subsequent
delivery on commitments) in a short
timeframe and timed the remaining
rollout (phases two and three) to
coincide with the business’s annual
planning and budgeting. WGroup also
provided the global entertainment,
gaming, and hospitality company with
a multi-vendor delivery model that
addressed risks and resolved ongoing
issues while at the same time had
the potential to provide significant
cost savings. Overall, WGroup gave
the company a management model
that provided it with increased
flexibility and control in regard to
future outsourcing relationships.
Contact Us
WGroup
301 Lindenwood Drive, Suite 301
Malvern, PA 19355
610-854-2700
Copyright © 2012 WGroup. All Rights Reserved.2
WGroup also
provided the
global entertainment,
gaming, and hospitality
company with a multi-
vendor delivery model
that addressed risks
and resolved ongoing
issues while at the
same time had the
potential to provide
significant cost savings.
EGH_VRMGSTCS_083012_002
About WGroup
Founded in 1995, WGroup is a boutique management consulting firm
that provides Strategy, Management and Execution Services to
optimize business performance, minimize cost and create value. Our
consultants have years of experience, both as industry executives and
trusted advisors, to help clients think through complicated and pressing
challenges to drive their business forward.
For more information on WGroup, visit http://thinkwgroup.com