How to implement a strategic IT vendor management programJeff Kubacki
CIO's and their IT leadership teams should focus more time on a strategic IT vendor management program. After doing this for 8 years by conducting annual IT vendor days and implementing World Class IT principles, I decided to share what has worked and why it is important in the transition to becoming strategic business partners.
Drawing on its specialized expertise in vendor management, in this case study WGroup assessed the client’s existing vendor management and sourcing practices, built the business case for a VMO, and designed and deployed a new VMO that was fully embraced by IT and business leadership.
How to implement a strategic IT vendor management programJeff Kubacki
CIO's and their IT leadership teams should focus more time on a strategic IT vendor management program. After doing this for 8 years by conducting annual IT vendor days and implementing World Class IT principles, I decided to share what has worked and why it is important in the transition to becoming strategic business partners.
Drawing on its specialized expertise in vendor management, in this case study WGroup assessed the client’s existing vendor management and sourcing practices, built the business case for a VMO, and designed and deployed a new VMO that was fully embraced by IT and business leadership.
Apothem Advisory is a consulting company serving buyer and sellers to derive maximum value from their outsourcing deals. Primary focus to help global clients build and implement robust supplier governance framework. The company also provide assistance to Suppliers in Strategic Account Management.
With the role of key vendors growing in importance and with more vendors being introduced into the workplace, effective vendor management has become a critical capability of any enterprise. This document describes how the design (or redesign) of the VMO needs to be approached with a focus on enlisting top skills, implementing effective processes and tools and establishing an organization whose role is clearly defined in the enterprise.
Vendor Management - Compliance Checklist Manifesto SeriesContinuity Control
Regulatory examiners are expecting to see and review your financial institution's vendor management program, which is to include a process for assessing specific vendor risk, vendor selection, contracting, and ongoing oversight. This webinar will demonstrate that implementing a repeatable process will provide consistency and reduce your institution's Compliance Tax by saving you time and resources, including helping to ensure your valuable dollars are spent wisely.
Objectives:
- Understanding of the regulatory requirements for the vendor management program
- High level overview of the key elements
- Provide guidance in developing your program
Post Award Contract Management for IT Suppliers v1.0 20200701Peter Soetevent
Post Award Contract Management for IT Suppliers is crucial to successfully manage the relationship between the Business and Supplier. This innovative framework offers all the elements for managing the process
The Ultimate Benefits Of Vendor Management System!LindaWells24
Outsourcing various services of your firm through a third party vendor is a great idea, but do you know it is even more beneficial if you choose an efficient vendor management system to manage the entire process! Through this slide, you will get enlightened about the key benefits you can have from a VMS. Check out this presentation to know more!
A presentation by Steven A. Melnyk, Professor of Operations and Supply Chain Management, Michigan State University, USA.
Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa.
Performance measurement plays a critical role in every organization. It is also undergoing a dramatic transformation. This presentation explores the changes taking place and the implication of these changes for the supply chain manager. It identifies and investigates the critical changes – from control to communication; from being backwards oriented to feedforwarding.
Cloudway Consulting Pvt Ltd Is a SAP Strategic Sourcing Consulting Company For SAP, SAP S4 Hana, SAP Ariba, SAP C4C, Success Factor and Business By Design for More Call us at +0120-4226511
Apothem Advisory is a consulting company serving buyer and sellers to derive maximum value from their outsourcing deals. Primary focus to help global clients build and implement robust supplier governance framework. The company also provide assistance to Suppliers in Strategic Account Management.
With the role of key vendors growing in importance and with more vendors being introduced into the workplace, effective vendor management has become a critical capability of any enterprise. This document describes how the design (or redesign) of the VMO needs to be approached with a focus on enlisting top skills, implementing effective processes and tools and establishing an organization whose role is clearly defined in the enterprise.
Vendor Management - Compliance Checklist Manifesto SeriesContinuity Control
Regulatory examiners are expecting to see and review your financial institution's vendor management program, which is to include a process for assessing specific vendor risk, vendor selection, contracting, and ongoing oversight. This webinar will demonstrate that implementing a repeatable process will provide consistency and reduce your institution's Compliance Tax by saving you time and resources, including helping to ensure your valuable dollars are spent wisely.
Objectives:
- Understanding of the regulatory requirements for the vendor management program
- High level overview of the key elements
- Provide guidance in developing your program
Post Award Contract Management for IT Suppliers v1.0 20200701Peter Soetevent
Post Award Contract Management for IT Suppliers is crucial to successfully manage the relationship between the Business and Supplier. This innovative framework offers all the elements for managing the process
The Ultimate Benefits Of Vendor Management System!LindaWells24
Outsourcing various services of your firm through a third party vendor is a great idea, but do you know it is even more beneficial if you choose an efficient vendor management system to manage the entire process! Through this slide, you will get enlightened about the key benefits you can have from a VMS. Check out this presentation to know more!
A presentation by Steven A. Melnyk, Professor of Operations and Supply Chain Management, Michigan State University, USA.
Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa.
Performance measurement plays a critical role in every organization. It is also undergoing a dramatic transformation. This presentation explores the changes taking place and the implication of these changes for the supply chain manager. It identifies and investigates the critical changes – from control to communication; from being backwards oriented to feedforwarding.
Cloudway Consulting Pvt Ltd Is a SAP Strategic Sourcing Consulting Company For SAP, SAP S4 Hana, SAP Ariba, SAP C4C, Success Factor and Business By Design for More Call us at +0120-4226511
Training Slides of Supplier Assessment and Performance Measurement, discussing the importance of Suppliers.
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
Effective governance is a critically important enabler in achieving “top performer” status. “Governance” is the third topic in a supply chain learning series presented by ScottMadden and Shared Services & Outsourcing Network (SSON). In this session, we focus on the key building blocks of effective supply chain governance models including decision rights, performance metrics, service level agreements, and issue escalation/resolution. In addition, we discuss how to create alignment across an enterprise for a consistent supply chain strategy that clearly differentiates transactional efficiency from higher-value, strategic activities.
To learn more, please visit www.scottmadden.com.
Transparency on the governance of services and delivering a collaborative environment to the Enterprise and Service Provider together driving better services, better customer outcomes, and outsourcing that delivers on its promise.
2. Who We Are
Danforth International LLC., is an independent global consulting entity, created by
aligning over 20 years of Vendor Management/Sourcing, Relationship/Project
Management, Operations, Strategy, IT Management skills and experience.
We seek to help clients realize the intended value of outsourcing arrangements
through the development of an effective vendor management program. Our program
will control cost, drive service excellence and mitigate risk to gain increased value
from each vendor throughout the contract life cycle.
Ken Danforth, President/Chief Consultant has been firmly entrenched with
domestic and international fortune 500 companies throughout career (IBM,
CIGNA, AT&T, KPMG, HBO & Co.,) Ken received his BS degree in Business and
Financial Management from Clemson University.
3. What We Are
We are a service operation that assist organizations in effectively managing vendor
performance, relationship, cost and contracts.
• Client Focused
We organize our processes and network to specifically meet the business outcomes and
performance needs of each client.
• Experienced
We bring expertise, knowledge, cost savings and a continual improvement mindset to keep
our services aligned with our client’s changing business conditions.
• Practical
We focus on performance measurements and strong working relationships to keep your
outsourced relationships robust.
4. What We Do
• Strategize and Plan
Define the structure, roles/responsibilities and resources to support long-term vendor
management. This ensures that sourcing decisions and vendor management practices
align with business needs and integrate with other strategic IT and business plans.
• Assess Current State
Review vendor acquisition and disposition processes, outsourcing contracts, SLAs,
performance metrics, scorecards, and assessments to identify improvements for a more
effective, efficient and consistent vendor management.
• Assess Competencies
Review and develop optimal strategy, operations and processes to support the vendor life
cycle (from acquisition to disposition), contract management, relationship management,
performance management and risk management.
• Operate and Evolve
Use assessment and industry data to track vendor management operations and success.
Adjust the discipline approach based on operational results, enterprise risk related to using
vendors, changing business needs and evolving product/service vendors.
5. How We Do It
We bring a number of important advantages to client engagements:
• Performance Management
• Relationship Management
• Cost Management
• Contract Management
We deliver results, not reports. To that end, we work collaboratively with
clients and vendors to create and implement practical solutions while
delivering real value within our business relationships
6. Planning
Governance
Business Unit Liaisons
Communications & Forums
Escalation Management
Issue Tracking
Contract Compliance
Amendments / Renegotiations
Benchmarking
Document Management
Policies & Procedures
Invoice Verification
Charge Back
Receipt of Service
Service Consumption Analysis
Cost Effective Measures
Budget & Forecasting
Relationship Management
Performance Management Cost Management
Contract
Management
Right Work, Done Right Validate and Manage Costs
Satisfaction, Direction Setting Ensure Compliance
Vendor
Management
Strategy
Service Delivery Requirements
Service Level Reviews
Problem Management
Tools
Conflict Resolution
Work Prioritization
Components of Value
7. Why We Do It
Whether the challenge is to:
• Reduce cost
• Measure performance
• Negotiate contracts effectively
• Assist in vendor selection
• Improve their risk profile
Our clients have confidence that we will make a real impact on their bottom line.
8. Why You Need Us
Problem
• Lack of experienced resources
• Cost of resources
• Contracts left open to interpretations
• Lack of oversight, resulting in rise in cost of solutions
Solution
• Create a cost management approach (evaluate, control, efficiency, maintenance)
• One-on-One (Liaison)
• Custom framework approach (implement vendor management strategy)
10. Steps to Identify, Validate & Operationalize
Framework Components
Transition
Support
• Defines the desired
organization
capability and
scope of vendor
management
activities
• Input from all users
• Each element will
be designed and
tailored based on
the specific
requirements
defined in the
strategic vision
• Each element is
documented to
facilitate the
validation, roll out
and ongoing
execution of the
framework
Design and
Documentation
• Key users will be
provided the
opportunity to validate
and vet the framework
to confirm that their
specific requirements
have been addressed
• Validation will support
execution of roll-out
plans, while creating
improved awareness
Validation and
Implementation
Develop the
Strategic
Vision
Reporting and
Continuous
Improvement
• Implementation activities
may include change
management and
communications,
process, reengineering,
progress reporting as
well as system
requirement definition
and selection
12. Vendor Management Strategy
Establishes the context, strategy, objectives and
guiding principles upon which
the framework is based
Vendor Management
Strategy
13. Vendor Management Policy
Defines the expectations and policy requirements of
the framework
Vendor
Management
Policy
Governance
Articulates organizational structures and reporting
lines for the day-to-day execution and
management of vendor management activities
Governance
Process
and
Controls
Process and Controls
Describes the activities through which policies will
be applied, defining process flows, accountabilities
and activities to ensure that vendor management
activities are conducted in a consistent manner.
Identifies critical vendor management risk and
controls for managing these risks
14. Roles and Responsibilities
Communicates the specific roles and responsibilities
of all stakeholders involved in the vendor
management lifecycle
Roles
and
Responsibilities
Performance
Reporting
Performance Reporting
Defines the reporting standards, tools and templates
to be used to monitor a vendor’s performance and
ongoing viability, identifying emerging vendor specific
risks and enforce vendor management activities
Enabling Technology
Outlines the systems and infrastructures required to
enable vendor management processes, including
reporting, that are compliant with the framework and
policies
Enabling
Technology
15. Measurable Strategic Value
Formalizing practices to measure and mange vendor performance through
targeted policies, controls, processes accountabilities and governance structures.
Define the interaction points between the vendor and the organization throughout
the vendor management lifecycle.
Proactively manage and mitigate vendor specific risks.
Providing insight on the spend and performance of vendors.
Reduce contract non-compliance and associated cost and effort.
Avoid overpayment and/or under delivery.
Better positioning the organization in on-going vendor negotiations to
increase value.
Engage key vendors for input and support into long-term strategic planning.
16. Building a strategic Vendor Management Program
“Collaboration is no longer an option…
it is now a fundamental strategy…”
“you cannot be successful with any
type of sourcing transaction without
good communications…”
17. Ken Danforth, Chief Consultant
e-mail questions to:
kdanforth@danforthintl.com
visit:
www.danforthintl.com