Managing Sourcing Relationships

In materials procurement it has long been accepted that tight management can reduce your procurement costs, by ensuring that refunds and discounts are taken, faulty or unused materials are returned and that renegotiation are conducted with enough data to drive a better deal.

Services procurement is no different.  Having easy access to clear, well structured, and easily analysed data puts control in your hands, and enables you to:-

Make the most of your service penalty clauses.

Most service contracts have service penalty clauses, which can amount to many thousands of pounds.  How often do you miss out on claiming these penalties?  Or find yourself in dispute over whether the penalty is due or not?

Ensure you are not being over-provisioned

ServiceFrame aligns service reporting with the key executive customers.  This way you can ensure that the service is being delivered in lines with the business’ strategic needs – and that where a service is being over-provisioned (i.e.  the service level is too high) you can reduce costs, by requesting a lower level of service from your supplier.

Negotiate better deals

Starting a deal with a clear description of the provider’s performance, places a key control in your hands – either to drive a better price for the existing services, or to look for higher quality outputs.

Even where you are moving providers, the data ServiceFrame provides gives you a clear advantage in negotiating the initial service levels and pricing.

If you would like to know more about reducing service provider costs, visit www.serviceframe.com.

We would be very happy to help you establish the business case for implementing ServiceFrame in your business.  If you would like to talk to one of the team please email us at info@serviceframe.com, or call us on +353 1 237 6620.