Focused on establishing successful long term relationships with vendors to whom provision of services or goods have been selectively or fully outsourced and on implementation of procurement best practices for contracting with vendors.
TBI’s Vendor Management Services provide our clients with support and guidance in evaluating current relationship management practices, improving the vendor management process, and defining and executing strategies for reducing the number of different suppliers for goods and services in order to leverage enterprise procurement and minimize procurement overhead. TBI also provides contract renegotiation guidance and assistance to clients to introduce improved terms and conditions and address client needs for improved quality of services and/or reduced pricing. These services are closely related to TBI’s Governance Services as well as the services offered through our Strategic Outsourcing practice.
Contract and Vendor Relationship Assessment
This service begins with a review of strengths and weaknesses of an existing relationship, taking a historical perspective. Changes in scope and pricing assumptions during the initial contract term, added value services provided, service delivery problems and unusual aspects of environmental complexity that impact on support requirements are examples of subjects to be explored in the interviews. TBI’s Contract and Vendor Relationship Assessment process yields separate vendor and client views and also allows identification of gaps in these perspectives. The process results in development of a set of specific recommendations for joint action as well as identifying needed client organization and vendor improvement initiatives. If desired, TBI can also provide cost and service level Benchmarking Services as part of a Contract and Vendor Relationship Assessment.
Vendor Relationship Management Program Planning
TBI’s focus in this service is establishing coordination mechanisms for regular vendor-client communications and planning activities. These can include performance reviews, joint action planning, strategic planning processes, and service request prioritization processes. It also includes establishment of structures for continuous improvement initiatives and mechanisms for motivating increased vendor cost efficiency during the contract term.
Procurement Best Practices
Vendor Management – The focus of this area of service is on planning and managing effective procurement processes in which vendors are provided with appropriate access to organizational resources to conduct needed due diligence and are assured fair and equal treatment. Services also include assistance to clients in establishing the appropriate level of vendor management overhead and reducing the total number of vendors to an optimal amount, and in establishing vendor accountability for managing their service levels to the organization.
Contract Management – Focus on establishing contract review points and change management processes and on crafting contractual terms and conditions that will provide the needed flexibility to accommodate business change (work volume fluctuations, business structure changes, technology change, etc.). Also assistance to clients in crafting contracting ‘templates’, standardizing terms and conditions and contract structure in order to facilitate on-going management.
Enterprise Procurement Process – Working with client’s internal procurement units, TBI can help to identify and pursue opportunities to achieve cost savings by leveraging purchasing of goods and services across the enterprise. This service includes development of standard process and guidelines for accomplishing enterprise procurement activity and strategies to coordinate organizational subunits and motivate their full participation in enterprise procurement.