copper-arrows
Bringing greater rigour and clarity to the supplier process

Service Area

Opportunity and Risk Management

Client

A fast-growing, UK-based online service provider

Problem triangle

Spiralling costs + disconnect

With a focus on marketing and sales, this rapidly growing business had struggled to give enough time to their back-office process and governance. As a result, senior management had little knowledge of their contractual arrangements, what they were spending and how many suppliers they had.

This was leading to spiralling costs, reactive decision-making and a disconnect between the business and the finance team.

Solution purple-aster-flower

A contracts database + engagement process

Our first task was to help the business understand the size, scope and complexity of its issues. We started by making sense of a “data dump” from various sources, creating a contract database covering all their outsource arrangements.

Next, we developed an appropriate level of process and control for future engagement. This ensured the data stayed on track going forwards.

At the same time, the budget process kicked in. The desired outcome? To deliver a spend forecast at supplier level that inspired confidence in the business and finance teams. We set up regular engagement with the finance team to allow both teams to review spend and spot risks and opportunities in advance.

Restult yellow-arrows

Consistency + full control

The activity is ongoing and the picture is improving all the time. So far we have:

  • Moved them from poor supplier knowledge to a single ‘source of truth’
  • Helped them gain consistency and control over supplier activity and spend
  • Identified savings opportunities of around 15% on the third-party budget
  • Empowered the business to manage new engagements and renewals in good time