Case Study #4802 - Supplier Management Process : Superannuation

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The Situation

The organisation had entered into a new IT managed services agreement with an external supplier.  The organisation was transitioning to the new supplier.  During this time Cherub was engaged to implement a number of supplier management solutions to support the organisations need to better manage external suppliers.

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Our Approach

Cherub worked with the client to develop three essential tools that would support the organisation into the future.

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Contract On A Page Summaries

We reviewed the outsourced contract in detail and provided a number of summaries, including Reporting requirements; Service Level Agreement summaries; Statement of Work Summaries; and Meeting Summaries.

The benefit of this is that staff within both the organisation and the supplier could quickly review and understand relevant requirements of the contract, without the need to review a 200+ page document.

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Executive Scorecard

We developed an executive scorecard that will be produced on a quarterly basis. The scorecard identifies the key business drivers that the organisation used when selecting the supplier, and reports on supplier performance against these drivers. The report audience is organisation senior executives, and the supplier senior executives.

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The benefit to the client and the supplier is that the organisation's business requirements are understood, and measured, by both the organisation and supplier.  This creates a much stronger alignment of needs and goals than simple SLA reporting.

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Supplier Segmentation

Cherub led the client through an analytical process of classifying its multiple suppliers into Tier 1, 2, 3 and 4.  Following this, appropriate layers of management were identified for each Tier. 

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The benefits to the client are that they can better understand where they need to apply more effort for certain suppliers, and where they can appropriately apply less effort for other suppliers.  The client quickly identified certain suppliers where they urgently needed to implement risk mitigation strategies and other suppliers where they could reasonably spend less time managing them.  This resulted in optimising their internal effort with limited staff.

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Client Benefits

The company has tools and disciplines in place that will allow them to properly manage the outsource supplier.  They are able to monitor the quality of service at multiple levels and make adjustments with the supplier when required to ensure the ongoing success of the contract.

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Further Information

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