Deloitte DK Vendor Relationship Management

7/27/2019 Deloitte DK Vendor Relationship Management

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Vendor Relationship

ManagementUnlocking value fromyour outsourcing vendors

Deloitte Consulting


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3Vendor Relationship Management

Introduction

Vendor management (VM) has become an integral part o the IT

organisation. It is becoming more important than ever or clients

to consider how they extract maximum value rom outsourcing ar-

rangement, particularly in the context o multi-sourcing environ-

ments. Outsourcing provides opportunities to leverage external

expertise and scale to provide quality services at reduced cost

enabling internal resources to be more ocused on organisation

specifc activities, appropriate to their knowledge and skill. Howe-

ver, without eective Vendor Relationship Management, organisa-

tions are at risk o services not delivering what the business requi-

res and at a premium cost to the business.

Aims & Objectives

Vendor Relationship Management is the discipline o managing

vendors to extract maximum possible value rom a contractual ar-

rangement through governance and relationship building. The

proactive management o ongoing commercial relationships ensu-

res that any technical or contractual loopholes are closed and that

commercial conversations are escalated to the appropriate level to

ensure prompt resolution o issues.

Vender Management ocuses on the transition, transorm and op-

timise phase o the Deloitte sourcing methodology:

EvaluatePrepare Transition OptimiseTransformAssess Commit

Vendor management lifecycle

Manage vendor Prepare for exitMobilise post contract

Develop relationship

Industry Trends

Today Outsourcing deals are entering 3rd and 4th generation, with

more demanding clients and vendors bringing more sophisticated

services and oers.

Companies are urther seeking to set up complex multi-sourcing

models across a number o service providers, leading to an aware-

ness or:

MovingintoemergingactivitiesofVendorManagementsuchas

multivendor integration and vendor risk management

Developingserviceproviderrelationshipsasanessentialand

mandatory investment leading to a strong partnership

Movingclientskillsandprocessestowardsmanagingvendorson

operational, managerial and strategic levels, rather than ocusing

on execution

Keepingthecontractalivebymanagingitonadailybasisrather

than monitoring it & periodically amending it


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Scope of VRM activities

The objectives o vendor relationship management is to develop

contract and commercial tools, models, systems and processes to

manage vendors and to ensure the proper investment into the re-

lationship happens.

Examples o vendor relationship management activities:

Relationship

development

Developingapartnershipphilosophywithin

the overall outsourcing arrangement

Completingrelationshiphealth-checksto

determine misalignments

Contract

Management

Advisingoncontractinterpretation Ensuringobligationsanddeliverablesare

managed, tracked and reported

Managingcontractchanges

Governance

Managinggovernanceforums,calendars

and ollow up actions

Providinginputonstrategygenerationor

capacity management processes

Finance and

Commercial

Ensuringnancialcontrolthroughnance&

invoicing management

Ensuringtheservicecreditmechanismsdrive

correct behaviours

Multivendor

Integration

Developing&maintainingcross-service

provider standards & procedures

Managing&drivingserviceintegration

collaboration

Issue & Dispute

Management

Ensuringdisputesaremanagedtrackedand

documented

Managingcontractissuesthroughrobust

implementation o rameworks

Performance

Management

ManagingvendorperformancethroughSLA

management, monitoring and trending

Providingdashboardreporting

Request

Management

Reviewingnewservicerequests&analysing

against contract

Integrationofapprovedservicerequests

into VM processes

Transition &

Transformation

Oversight

Overseeingtransition&transformation

planning, monitoring, reporting and change

management

Drivingvendoraccountbehaviours

Vendor Risk

Management

Evaluationofvendorriskmanagement

rameworks

Performingriskmanagementanalysisof

vendors

Document

Management

Ensuringimportantdocumentsandcontrac-

tual arteacts are managed

Settingupstoragerepositories

Developingprocessdocuments


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How can we help you?

Deloitte has built up a vendor management optimization appro-

ach, supported by strong capabilities, tools and methods to assist

clients ensuring the optimal vendor management environment is

established to sustain complex IT sourcing arrangements. Based on

our proven methodology we can design, build and implement an

eective vendor management organisation. With its cross unctio-

nal expertise, Deloitte can develop and improve the various key

areas o vendor management such as contract management, com-

mercial management, governance, vendor integration, risk mana-

gement, and other unctions o VM.

Supporting our clients to set up their vendor managementorganisation

The VM proposition is based on concrete tools and methods. The-

se include:

Contract Assessment Relationship health check

We have robust

tooling, met-

hodologies &

skills that rapid-

Our health

check approach

identifes the re-

lationship im-

ly assess existing contracts. This

helps to identiy improvement are-

as or renegotiations or awareness

or contract managers.

provements needed to unlock ma-

ximum partnership value using

Deloittes skilled organisation and

change specialists.

Maturity assessment Operating models

Conduct an as-

sessment o the

current state

vendor mana-

Development

and implemen-

tation o good

practice vendorgement organisation ollowed by

deployment o maturity assessment

tools to determine the gap bet-

ween current operation and good

practice.

management operating models en-

suring the correct activities are car-

ried to manage vendors and unlock

value.

Why Deloitte?

We can assist our clients in successully managing vendor relati-

onships, through a consistent methodical and robust approach.

Independence - we do not oer outsourced services and thereo-

re provide clients with an independent, inormed view o the out-

sourcing marketplace

Breadth o capability Deloitte is unique in bringing together all

the diverse skills needed to support a major outsourcing program-

me

Full Lie Cycle View - Deloittes tools and accelerators can guideclients through every stage o the outsourcing liecycle.

Global Experience Deloitte has an outstanding track record o

advising organisations at all stages o sourcing deals, ranging in

value rom a ew til m to 3bn.

Deloitte worked with Barclays in suc-

cessully setting up a VM ofce, includ-

ing an operating model, key processes

and governance.

Deloitte carried out a VM maturity as-sessment and set up a VM ofce with

Arla,amajorconsumergoodsorgani-

sation in Denmark.

Confdential

Deloitte assisted an International Top

5 Fortune 500 Insurer, with vendor re-

lationship management.

Confdential

Deloitte successully delivered a Vend-

or Management maturity assessment

withaglobalinsurerintheUK.


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Deloitte Consulting turning ideas into realityDeloitte Consulting ocuses on developing and improving the efciency o the

clients organisation, core processes, fnancial management and IT to help realise

their strategic objectives. We know all the ins and outs o the public and private

sectors and combine our proessional competencies with the skill in managing,

steering and implementing projects in complex environments. Be it as advisers or

process managers rom idea stage to implementation.

Deloitte Touche Tohmatsu LimitedDeloittereferstooneormoreofDeloitteToucheTohmatsuLimited,aUKprivate

company limited by guarantee, and its network o member frms, each o which

isalegallyseparateandindependententity.Pleaseseewww.deloitte.com/about

foradetaileddescriptionofthelegalstructureofDeloitteToucheTohmatsuLimi -

ted and its member frms.

2012DeloitteStatsautoriseretRevisionspartnerselskab.

MemberofDeloitteToucheTohmatsuLimited

DK Vendor Management Contacts

Thomas Andersen

Tel. +45 36 10 27 52

[email protected]

Per Lund PedersenTel. + 45 36 10 24 51

[email protected]

Anja Zimmer

Tel. +45 36 10 35 65

[email protected]

Documents

Deloitte DK Vendor Relationship Management