As organisations continue to be challenged to manage costs, leading organisations are sourcing externally a number of operational and other commodity functions to third-party vendors. This strategy has increased both the number and the complexity of vendor relationships, in turn increasing the importance of controlling and maximising those relationships.
Since procurement plays an increasingly important role in the economy, a higher degree of service content has created new forms of partnership, with an increasing degree of “procured service content”. Procurement costs weigh significantly on the competitiveness of a company, regardless of the industry in which it operates: a lack of investment in procurement equates to a reduction of value.
Investment involves more than just numbers. It is about extending the scope of procurement from price cutting to challenging needs and consumption patterns, from negotiating to managing the preferred supplier panel. Buyers and suppliers need to address a list of success factors to generate value from new forms of partnerships. New capabilities within the IT organisation need to be built up – from orchestration of a vendor landscape to real business consulting.
Some of the common questions we hear from our clients include:
Can we measure the performance and price of our service providers?
Do we have the necessary market insights for contract (re)negotiations?
How can we be sure that our contracts terms are competitive?
How do we reduce our operational costs?
How can we focus on core business processing?
How can we improve on quality, efficiency and turn-around times while expanding upon existing capabilities, products and service offerings?
Henderton helps its clients to improve their procurement efficiency at all stages in the sourcing lifecycle, empowering suppliers as an additional savings enabler through strategic and adaptive sourcing, supplier relationship management and total cost reduction planning.
With a combination of strong procurement and supply market expertise, our procurement and sourcing advisors offer our clients the benefit of their expertise, regardless of the category.
We stay close to you both during and after implementation so we can be sure that customer and supplier are working to continue to deliver benefits in a transparent and beneficial way.
Vendor strategy: review of the vendor landscape and supply chain, identification of alternatives, definition of optimal supplier landscape, quantification of benefit potential, business case, and roadmap for change.
Outsourcing: development of the appropriate strategy to mitigate risk, including loss of processing visibility, quality and control, customer dissatisfaction and hidden fees or costs (for example legal fees or contract co-ordination).
Capability assessment: review of internal capabilities and capacities with our independent, fact-based experience and advice, and knowledge transfer.
Vendor toolkit: Tools and templates which outline the necessary vendor data to obtain for the purpose of analysing, assessing and selecting an outsourcing partner.
Tender management: support along the process, from needs and strategy definition, to forms of procurement and contract-performance monitoring.
Contract price competitiveness: evaluation of efficiencies from an outsourced investment by assessing the price competitiveness of a provider’s contract against comparable peers.
Negotiation support: expert negotiation guidance to develop and implement best-in-class contracts, achieving the best possible terms while sustaining productive vendor relationships through negotiation and due diligence into live operations.
Risk management: mitigate risk by understanding proposed contract terms regarding long-term and strategic commitments, while incorporating terms which ensure savings, avoid cost escalations and protect you from oversights and pitfalls.
Vendor oversight: toolkit to enhance the metrics and analytical reporting involved in the implementation, and governance and management phases of the vendor sourcing lifecycle.
If you would like to learn more about our experience, please contact our Technology practice.
We have helped many companies with their strategic sourcing and vendor optimisation initiatives, improving the sourcing and managed-services contracts performance by addressing key levers such as sourcing-model redesign, contract optimisation, supplier management review, and challenging current vendors for innovation, service and operational performance enhancement.
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