Download
1 / 27

Breakout Session 203 Jon Maxim, President, Maxelerate April 10, 2006 2:45 PM - PowerPoint PPT Presentation


  • 94 Views
  • Uploaded on

Vendor Performance Management. Breakout Session 203 Jon Maxim, President, Maxelerate April 10, 2006 2:45 PM. Competitive Environment. Preparation. Management. Negotiation. The 4 Phases. Control Unmanageable Vendor. Direct Long-Term Relationship. Optimize Vendor Performance.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Breakout Session 203 Jon Maxim, President, Maxelerate April 10, 2006 2:45 PM' - mandelina-jorgensen


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Vendor Performance Management

Breakout Session 203

Jon Maxim, President, Maxelerate

April 10, 2006

2:45 PM

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


The 4 phases

Competitive Environment

Preparation

Management

Negotiation

The 4 Phases

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


The vpm process

Control Unmanageable Vendor

Direct Long-Term Relationship

Optimize Vendor Performance

Manage The Contract

Management

The VPM Process

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Control

Unmanageable

Vendor

Direct

Long Term

Relationship

Optimize Vendor Performance

The VPM Journey

Manage The Contract

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Manage The Contract

  • Manage the “Paper Trail”

  • Manage the money

  • Manage your assets

  • Manage changes

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Manage the contract
Manage The Contract

Administer Contract

  • Manage the “Paper Trail”

    • Contract content and event tracking

      • Deliverables

      • Service level agreements

      • Events: Renewals, termination, price, etc.

    • Vendor interaction documentation

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Manage the contract1
Manage The Contract

Administer Contract

  • Manage the money

    • End-to end payment administration

    • Remedy and reimbursement entitlement

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Manage the contract2
Manage The Contract

Administer Contract

  • Manage your assets

    • What is an asset?

    • Physical Assets

    • Intellectual Property

      • Yours

      • Theirs

    • NDA’s and Proprietary Information

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Manage the contract3
Manage The Contract

Administer Contract

  • Manage changes

    • Inevitability

    • Vendor vs. client view

    • Incorporate rolling estoppels

    • Change process

      • Focal point

      • Response format

      • Timely disposition

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize Vendor Performance

  • Track & Measure

  • Compare

  • Act!

  • Incent

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance
Optimize Vendor Performance

Enforce Compliance

  • Track

    • Customer responsibilities

    • Vendor responsibilities

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance1
Optimize Vendor Performance

Enforce Compliance

  • Measure

    • Aligned with contract

      • SLA’s

      • Methodology

    • Problem prevention

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance2
Optimize Vendor Performance

Enforce Compliance

  • Compare

    • Vendors within categories

    • Executive communication

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance3
Optimize Vendor Performance

Enforce Compliance

  • Act!

    • Feed Back Performance

    • Obtain Remedies

    • Vendor management automation tools

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance4
Optimize Vendor Performance

Vendor Tiers

  • Why tier?

  • Criteria

  • Expectations

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance5

Strategic

Preferred

Standard

Optimize Vendor Performance

Tier III

Tier II

Tier I

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance6
Optimize Vendor Performance

Incentives Management

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance7
Optimize Vendor Performance

Incentives Management

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance8
Optimize Vendor Performance

Incentives Management

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Optimize vendor performance9
Optimize Vendor Performance

Incentives Management

  • Rights, remedies & rewards

    • The limitations of remedies

    • Use of incentives and rewards

    • Optimum performance vs. overpaying

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Direct Long Term Relationship

  • Establish Correct Relationship

  • The True Strategic Supplier

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Direct long term relationship
Direct Long-Term Relationship

The True Strategic Supplier

What a strategic supplier brings to the “relationship table”:

  • Engages you in joint development

  • Their senior execs are assigned to you

  • Account teams have high knowledge level

  • Accountable for product performance

  • Leader in their industry

  • Committed to continuous improvement

  • Expectations custom built to your company

  • Create competitive advantage for you

  • Provides preferential pricing

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Control Unmanageable Vendor

  • Love

  • Leverage

  • Conflict Resolution

  • Termination

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Control unmanageable vendor
Control Unmanageable Vendor

Sources Of Leverage

  • The Contract

  • The Marketplace

  • The Relationship

  • The Law

  • Your Checkbook

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


Control unmanageable vendor1
Control Unmanageable Vendor

Termination Project Plan

  • Assign project manager

  • Form transfer team

  • Develop termination strategy

  • Gain executive sponsor approval

  • Select replacement supplier

  • Develop transition plan

  • Ramp up new supplier

  • De-ramp current supplier

  • Deplete inventories

  • Clear invoices

  • Inform clients

  • Communicate with current suppliers

  • Communicate with stakeholders and business units

  • Terminate supplier transactions

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


5 keys to success
5 Keys To Success

  • Executive support

  • Teaming stakeholders

  • Classification of suppliers

  • Measurement

  • Rules of engagement

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management


ad