Comments for 360° Vendor Management

Comment on Outsourcing Contract Incentives: What is a Pound of Carrots Worth? by Incentives « NET(net), Inc.

Incentives « NET(net), Inc. — Thu, 13 May 2010 16:01:31 +0000

[...] is known as an incentive payment. Over at 360° Vendor Management, Tony started the conversation by talking about how to use incentives. Except for some specific things like requirements [...]

Comment on IT Outsourcing Metrics: A Good Example of Management Controls by IT Services

IT Services — Tue, 30 Mar 2010 10:06:40 +0000

That’s interesting that BPO vendor managers can use the same approach, as different transaction types require different service levels, but, by breaking the into clear categories, vendor performance of each transaction type can be evaluated. Nice blog.

Comment on Outsourcing Vendor Management Organizations by Vendor Management Organisation (VMO) | Offshoring as a Service

Vendor Management Organisation (VMO) | Offshoring as a Service — Fri, 26 Mar 2010 15:31:11 +0000

[...] should this organisation belong? In-Line VMO? VMO Governance Teams? Centralized Corporate VMO? Read Outsourcing Vendor Management Organizations for more input. It is a complex organisation because it has to be placed correctly, a governance [...]

Comment on Vendors or Partners? by Dipali Patankar

Dipali Patankar — Thu, 25 Mar 2010 09:34:23 +0000

At a ground level, the teams should work as partners. However you do need a formal customer:vendor relationship at a higher level. This seperation of entities requires dedication and commitment from both parties and at a senior level in both companies.

Comment on A Cozy Stable for Outsourcing Vendor Management Professionals by Brad Rubin

Brad Rubin — Wed, 03 Mar 2010 19:05:37 +0000

Very nice gentleman. Congratulations!

Comment on Outsourcing Metrics: Key Performance Indicators by Mee Honeymoons

Mee Honeymoons — Sun, 07 Feb 2010 20:49:20 +0000

Hey very nice blog!! Man .. Beautiful .. Amazing .. I will bookmark your blog and take the feeds

Comment on Outsourcing Governance and “Who Owns Supplier Performance Management?” by Sameer Srivastava

Sameer Srivastava — Sat, 06 Feb 2010 11:45:09 +0000

Like you said, we need to be able to measure the value that the vendor management program offers the firm. For example, a company looking to hire employees on a contractual basis might have the following metrics in place:

1> Turnaround time from request to delivery of pesonnel
2> Quality of personnel provided e.g. no. of candidates hired
3> Rates of the candidates compared to what was being paid before
4> Completeness and quickness of the on-board and training program

These metrics and others should be based on the key objectives the procurement function has alongwith the overall company strategy

Comment on Outsourcing Governance and “Who Owns Supplier Performance Management?” by Traoloch Collins

Traoloch Collins — Wed, 13 Jan 2010 17:03:53 +0000

We believe that supplier performance management is a key ingredient not only to high performing sourcing relationships but also effective cost control. We are currently working on a model which allows all contracts in an organisation to be scored – based on weighting assigned to individual KPIs and also performance against the KPIs. We are in the process of trying to align that to an ongoing value analysis and cost management model. I will be happy to post you a link to our blog piece on this when we get something more concrete.

In the meantime this went up today which may be of interest – http://blog.serviceframe.com/index.php/2010/01/what-do-you-mean-by-vendor-performance-management/

Comment on Outsourcing Contract Penalties: Do Vendors Respond to the Pain? by Traoloch Collins

Traoloch Collins — Wed, 13 Jan 2010 17:00:13 +0000

This is a very good blog and touches on lots of the key points I have heard both service providers and clients talk about. I think the truth is that performance management is really still in its infancy in outsourcing. Whilst clients invest lots of time and effort creating KPIs they are rarely managed effectively. A lot of this is related to the focus that tends to be put on ‘issues’ rather than service quality. Many operational people on the client side can feel they are too busy dealing with issues to manage at the serivce level. When KPIs need to be managed with spreadsheets and e-mails then this is an understandable sentiment. We have taken on the task of trying to simplify the whole performance management process through our product but are extremely conscious that what’s needed are simple flexible solutions. I do not agree for a minute that clients should ever lose control of the detailed service data – trust with information is just stupid blind faith = and despite what service providers might like to say it is always a commerical client/vendor relationship.

Comment on Outsourcing Governance and “Who Owns Supplier Performance Management?” by Gerry Gatto

Gerry Gatto — Mon, 11 Jan 2010 15:30:06 +0000

I’m in the telecommunication industry in Canada and there seems to be a gap on this topic within our own company/industry. Here are some goals and ways to acheive them but certainly there are many more that can be added.

Goals of an SPM process
1. Ensure agreed upon metrics are being met or advancing in the right direction.
2. Ensure pricing and delivery agreed upon are being met.
3. Ensure contractual obligations are being met by both parties.
4. Seek to leverage value-adds from the vendor that will increase efficiencies to the organization
5. Keep internal stakeholders apprised of issues, opportunities and successes.
6. Work to lower costs; including inventory investment, unit pricing and other expenses related to procurement of goods

How to achieve its goals
1. Meet with vendors on a regular basis to access progress and track results even if there were none.
2. Verify invoices against contractual pricing and track audit results.
3. Track key contractual obligations and ensure stakeholders are aware of milestones
4. Work closely with key vendors to create value adds that supports your organization and in turn increases the profile of the vendor for future opportunities
5. Document results related to key vendors and share status with all stakeholders on a monthly/quarterly basis.
6. Understand the abilities of the vendor to support vendor managed inventory and obtain written commitments to hold stock exclusive to your companies needs.
7. Understand the vendor’s process to help streamline and reduce wasted efforts to drive their costs down and in turn reduce the unit cost to your organization; note this will require a more mature relationship with your vendor that must be built over time and with trust.