Problem
The IT and digital team knew they needed some help with their supplier engagement and management, however, they were’nt sure where to start. Engaging a full time employee was not an option as:
- Without the data, the ROI was not justifiable
- They weren’t sure exactly what was needed without a good understanding of their supplier portfolio
- Recruiting would take time they didn’t have
Solution
An initial spend and risk opportunity analysis highlighted the focus areas. There were some obvious quick wins in terms of supplier consolidation, contract negotiation and spend control. We agreed a fixed number of days per month to cover proactive work to:
- Get control of the supply base
- Instigate a process to manage the suppliers
- Realise the cost benefits identified in the opportunity analysis
- Start some proactive budget and forecast management
Results
- A summary of their existing supplier portfolio with opportunities for value improvement and delivery via an Opportunity Analysis
- A consistent and guaranteed level of support available across the month
- Flexibility to deliver the benefits identified, but with the scope to reprioritise activities and upscale as needed
- A justifiable ROI as the cost of the service was tailored to the clients spend portfolio
- Increased commercial awareness within the team and the introduction of basic procurement and supplier relationship management skills and processes
25%
Cost savings in year 1
30%
Reduction in supplier base
When I joined the business I had a long to do list however thanks to Sarah's excellent work, putting in a supplier procurement and management process wasn't on the list. After establishing the approach she was very happy to help us shape it so we could then manage it internally, showing a focus on what's best for our organisation. If you're looking for help in your IT procurement then I would happily recommend Sarah.”
