Provider Management

Provider management - what's the point?

The supplier delivers the ordered goods - and if not, then the purchasing department just hangs around! That simple, isn't it? Of course, the purchasing department has full transparency about what the ordered service has to look like and knows the requirements and use in the specialist area very well. And we have a sophisticated scoring system for supplier evaluation. And yet the unpleasant feeling is growing that the supplier is not meeting expectations and is more expensive than expected!

The procurement of regularly provided, complex services is fundamentally different from the traditional procurement of the famous men's socks. And it is precisely this situation that companies are increasingly entering through the outsourcing of entire process parts, the purchase of software-as-a-service (SaaS) and even the establishment of intra-group shared service centers. To describe contractual performance, there are contracts, service slips, SLAs and OLAs and so on - right. But with what love for detail were these defined? How regularly are the reports analysed and then discussed with the provider? How often have the terms been adapted verbally on demand instead of cleanly adapting the contract? The list could be extended at will.

As is so often the case, one of the causes is already at the beginning of the process, in this case in the tender for the service. Is the organization ready for complex sourcing?

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Our broschure for provider management

Successfully manage service providers: Success Factors for effective Vendor Management
  • Challenges: Managing external service providers or shared service centers
  • Factors for result-oriented and successful vendor management 
  • Solution: Targeted design and consistent performance of the central tasks of vendor management
Download (PDF - 4-Pager, 713 KB)

Our experts for provider management

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Stephan Grunwald
Markus Noçon
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