Case Study #4404 - Supplier Management Process : Government

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The Situation

A major State Government Department had a large number of Suppliers delivering a range of managed services, product supply and support, and projects services through a variety of contractual agreements.  They were faced with the challenge of managing this multitude of suppliers and contracts with a very small internal team.

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The Department recognised their challenge in ensuring that all supplier contracts were being adequately managed, benefits fully realised, and conditions of contract adhered to.

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Our Approach

We developed a supplier and contract management framework for the Department which took account of its resource constraints whilst enabling it to meet the challenges. That framework addresses:

• Categorising contract and supplier types to allow the internal team to focus attention where it is most needed

• Recognising different lifecycle stages in procurement, from business case, procurement, execution, and 3 alternate outcomes before further procurement

• Recognising the five core supplier and service management roles

  • Performance management

  • Financial management

  • Relationship management

  • Contract administration & Risk management

  • Managing innovation

• Identifying key organisation stakeholders, and their roles in providing and supporting an holistic supplier and service management function

• Developing an approach for managing both complex contracts / major suppliers and simple contracts / minor suppliers, using a limited number of client staff.

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Client Benefits

The Department has a framework that allows it to effectively manage its diverse and ever-changing set of contracts and suppliers with a small internal team.  There is recognition that other stakeholders in the Department and Government play a key role in supporting that management function.  There is also recognition that the level and type of management required varies depending on the lifecycle stage of the contract and the risk posed to the Department by the contract or the supplier.

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Further Information

For more information, please contact our lead Partner for this engagement.
Contact Us

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