Vendor management
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Vendor Management Strategic Planning March2011 Sourcing and Selection Vendor and Service Management Program and Portfolio Management
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A brief introduction to Vendor Management.
Transcript of Vendor management
Vendor Management
StrategicPlanning
March2011
Sourcing andSelection
Vendor and ServiceManagement
Program and Portfolio Management
About CHERUB
Cherub Consulting Group (CHERUB) is a specialist advisory and consulting firm that brings together a rich heritage of experience and expertise in business and ICT management. We are about practical solutions – combining specialist skills in governance, strategy, performance management, sourcing and organisational change to make a real difference for our clients.
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John Liburti, DirectorJohn has expertise in Strategic Sourcing, Procurement, Team Management, Project Management and transition management gained within well respected Global firms. Broad Asia Pacific experience is coupled with wide ranging industry knowledge that includes Government, Financial & Professional Services, Logistics, Pharmaceutical, FMCG, Manufacturing and Resources.
Mark Probyn, DirectorMark is a management consulting executive with expertise in strategic sourcing, shared services, financial analysis, and project management gained in well respected Global companies. Asia-Pacific focus is coupled with wide-ranging industry knowledge that includes Resources, Government, Financial, Professional Services, Logistics, Utilities, and Manufacturing.
Why does Vendor Management matter?
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Our research indicates that many clients are not fully satisfied with the outcomes of their outsourced arrangements. This does not necessarily mean that they intend to terminate, but there may be questions around:
• Is the contract meeting my original business case outcomes?• Are my staff receiving the quality of service I expected?• Am I paying more than I expected due to “additional costs”?• Is my Vendor focussing on the contract rather than the relationship?• Am I focussing on the contract rather than the relationship?
Effective Vendor Management will help ensure that you know the answers to all of the above, and should ensure that you are managing the Vendor appropriately to ensure a positive outcome
Vendor Management must be established at the outset, not as an afterthought
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•Performance Mgt•Relationship Mgt•Financial Mgt•Contract Admin & Risk Mgt
•Managing Innovation
Sourcing Strategy
•Business objectives•Internal capabilities•External capabilities•Sourcing models•Co-management Principles
•Sourcing team
Vendor Management
In-House
Evaluation & Selection
Contract Development
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1, 4, 2, 3 is the way to succeed!
Roles of Vendor Management
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Performance Management
RelationshipManagement
ChampioningService
Innovation
FinancialManagement
ContractAdministration
& Risk Management
Managing information flows
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Service ProviderService Recipient
Service Delivery AgentsEnd-Users
Senior Management
Senior Management
Performance Management
RelationshipManagement
ChampioningService
Innovation
FinancialManagement
ContractAdministration & Risk Management
Contract lifecycles and Vendor Management involvement
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Contracts can be considered to have three primary stages (Requirements, Procurement and Execution), plus three status conditions as an extension of the Execution stage (Renewal, Revision and Rectification).
Requirement Procurement Execution
Renewal
Revision
Rectification
Contract expiry point
Potential contract termination point
Potential contract termination point
Vendor Management capabilities vary at different stages in the lifecycle
Level of Competency required for each Capability
Capability versus Competency
Technical understanding
& skills
Business knowledge &
awareness
Personal attributes &
characteristicsService Performance Management Relationship Management Service Financial Management Contract Administration & Risk Management Championing Service Innovation
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© 2005, Gartner, Inc. All Rights Reserved.
CHERUBcg Contact Information
Mark ProbynDirector
Telephone: +61 419 376 411email: [email protected]
John LiburtiDirector
Telephone: +61 403 484 948E mail: [email protected]
Contact Details
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