Ongoing management of vendors is complicated by the way most organisations are structured. The role of managing the ongoing performance of vendors might sit largely within the business or operational unit to which the service is being delivered by the vendor. (if it is an outsource it might be HR, IT, Finance etc.) Nevertheless Procurement and Finance and real ongoing stakeholders in the management of the vendors on an ongoing basis. Procurement negotiate the best price possible for the delivery of the service at a specified level. But is the service actually delivered at that level? If not how do you find out about it?
The truth is that links between Procurement, Operations and Finance tend to be poor when it comes to ongoing management of vendors. Unlike commodity purchases when buying services it is critical that the relevant performance and risk information is available to procurement and operations when they need it. Our approach to this problem is a very simple one. ServiceFrame is a technology solution which sits alongside your traditional purchasing software – however ServiceFrame is a tool where the performance and risk associated with all vendors who provide ongoing services can be tracked. Performance and risk information on contracts can be entered by both the client and the service provider organisation. ServiceFrame is configured by your organisation to automatically send e-may alerts to the relevant teams in procurement when service penalties are (or are about to triggered!).
Sound simple? Well it kind of is. The most important thing is that the performance of all your ’service’ vendors is stored in one place. Allowing you to go in and analyse performance as needed from high level aggregated dashboards to individual performance over time on specific KPIs – but providing you with alerts when you don’t have time to check whether performance affects contract compliance.
If you think you can better performance and cost savings by managing vendors more effectively then call us on + 353 1 237 6620 or visit www.serviceframe.com
