REVIEW BEFORE YOU RENEW
The Overlooked Benefits of Vendor Performance and Value Assessment
In today’s market, reactivity equals obsolescence. Your IT org must be proactive, which requires regular review and assessment of vendor value. Renewal is the easy option, but may not be the right solution.
Key advantages of ongoing vendor performance review include:
- Performance Optimization
- Cost Management
- Favorable Rates & Terms
- Service Improvement
- Risk Management
- Strategic Alignment
- Innovation Adoption
Overlooked, Invaluable Benefits of Proactive Vendor Management
Proactive vendor assessment addresses two reasons companies often cite for dissatisfaction with their providers but have difficulty identifying and resolving.
You need a multifaceted approach to vendor management to circumvent the “watermelon effect” – which occurs when vendor performance metrics appear “green” in surface-level reporting, yet underlying issues reveal a problematic “red” center.
Consistent, rigorous reviews that include qualitative feedback from internal stakeholders, and diving beyond surface-level metrics to deeply analyze performance data, fosters transparent communication with your vendors and encourages honest reporting and feedback.
Outsourcing delivery management provides a structure that establishes trust and collaboration between your company and vendors, allowing open discussions about challenges in order to protect your business from the watermelon effect.
SLAs alone are not effective at maximizing benefits from a vendor relationship. Managing performance for agile teams, which are integrated by multiple service providers and delivery sources, must go beyond service-level agreements. SLAs are best viewed as a tool that sets minimum thresholds.
When your goal is highly integrated teams that work as one, SLAs set a baseline but cannot reliably ensure peak outcomes. To unlock real value from your teams, firms must go beyond SLAs and create true relationships. This is where expert vendor management from an experienced and knowledgeable consultant delivers ROI.
Learn Where You Are to Know Where You Need to Go
Get a comprehensive rapid assessment from K&B to understand the current efficacy and alignment of your vendor engagements.
Our Rapid Assessment Covers
Competency
Resource Sufficiency
Cost and Turnover Insights
Watermelon Effect Detection
Value Realization
Pain Point(s) Analyzed
Lack of access to the appropriate resources needed to meet your strategic objectives.
Unstable vendor relationships that have negative financial implications.
Inadequate cost structures and sourcing strategies.
Performance metrics are service-level indicators and fail to reflect underlying service quality.
Not seeing the innovation and value promised at the outset of your vendor agreements.
Value Delivered
We scrutinize the sufficiency and alignment of vendor resources against your business goals.
A clear view of your investment, highlighting the turnover rates and cost-effectiveness of the vendors you rely on.
Identify discrepancies between reported success and actual operational performance.
We assess the tangible outcomes of innovation projects and other key deliverables to confirm those investments yield expected benefits.
A rapid, insightful assessment from K&B empowers you
A rapid, insightful assessment from K&B empowers you to make informed decisions that ensure your vendor relationships are cost-effective, strategically aligned and generate true value.
