Business Benefit:
Typically, only 20% of spend resides in the tail vendors. However, the combined risk they represent is significant. This represents a huge resource drain and the controls that need to be considered are:
- Increased risk of the unknown/unmanaged
- Data loss
- Reputational damage
- Inability to centrally control maverick
- Increased non-compliance against new regulations of tail vendors
- Missed opportunities to innovate
- Improved data quality and reporting
- Increased productivity per FTE
Renewal management includes:
Setting up digital meetings and coordinating any exceptions that come out of these.
Meeting set up for twice a year to consider:
- Each Contractual Agreement: The current state of the contract arrangement. Have there been changes? Do there need to be some changes? Mutual understanding?
- External or Internal Factors – Have there been any recent changes that affect the products and services they provide?
- Forward-Looking – Supplying and reviewing roadmap to assess if needs are being met and they are on target
- Challenges / Blockers – What are the concerns/challenges. Any inconsistencies or setbacks in the partnership?
- Financial Stability & Risk – Checking for signs of company instability
- Regular reporting is provided covering the status of each meeting and any output that needs to be considered
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01.
Maturity Benchmark
Benchmark your current maturity against 7 discipline best practice aligned framework and know where your next steps should be focusing on.
Vendor Management Maturity Benchmarking
