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Sourcing Vendor Management and Governance: House in Order? Or House of Cards?

Posted: 03/25/2016 - 08:21

partner-supplied-content   Mature enterprises today recognize the importance of Vendor Management and Governance (VMG) to an effective sourcing strategy. In complex environments with multiple providers, VMG is essential to overseeing the contractual, financial and operational obligations of each vendor in the delivery mix. Moreover, by driving consistency and standardization across providers, VMG enables the integration of multiple vendors and the implementation of the end-to-end, outcome-based service models that have emerged as the gold standard of sourcing strategy. Client organizations have in most cases relied on internal resources to build their VMG capabilities. However, savvy executives are finding that engaging a specialized third party to assume many of the routine transactional and administrative functions of vendor management can yield important benefits – specifically, cost savings in the range of 30 percent coupled with improved service quality. As with any operational strategy, the key to successful VMG is to retain strategic functions and to outsource commodity services to optimize cost efficiency. This Alsbridge white paper examines the role of VMG in the sourcing strategy of large global enterprises and describes options available to client organizations. The author also outlines challenges associated with VMG, key success factors to engaging a third-party vendor management provider and examples of processes that are ideally suited to outsourcing as well as those that should be retained. Click here to go to the registration page to download this white paper.


[EDITOR'S NOTE: In December 2016 Alsbridge was acquired by Information Services Group (ISG). To avoid confusion and for the purposes of historical integrity, Outsource has kept all references to Alsbridge in place, on all content published prior to the date of acquisition.] Alsbridge is a management consulting firm that helps companies improve operations, reduce costs and optimize service provider relationships. With over 300 consultants globally, Alsbridge has worked with over 40% of the Fortune 500 and currently advises over 200 clients a year on over $11b in spend. We apply operational data and market insight to help clients align sourcing strategies to business requirements, negotiate contracts at fair market prices and improve governance and vendor management. Services comprise Sourcing Advisory, Network, Transformation and Cloud, IT Asset Management, Benchmarking, Vendor Management and Governance and Intelligent Process Automation Advisory. Contact us to learn more.

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