Vendor Management Best Practices: Identifying Potential Supplier Risks and Unforeseen Cost Implications for an IT Services Provider | SpendEdge
LONDON--(BUSINESS WIRE)--Jan 9, 2019--SpendEdge, a well-known procurement intelligence solution provider, has announced the completion of their latest .
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Vendor management best practices study for an IT services provider. (Graphic: Business Wire)
The growth of the is highly dependent on economic cycles as IT services are project-based and often represent discretionary spending. However, with the relative growth in tech-savvy consumers in the IT sector, the need for unconventional and innovative ways to enhance growth opportunities has grown significantly. With consumers becoming technologically driven and less confined to outdated technologies, leading IT services providers have been compelled to offer customized products. They are relying on innovations in their product offerings to improve customer satisfaction and increase overall profitability. However, such innovations require proper supplier governance and control measures to avoid overspending of revenues. This has forced many large enterprises to increase their dependencies on external suppliers and leverage vendor management best practices to reduce cost and improve corporate compliance.
According to the procurement experts at SpendEdge, “The rising volume of data in the IT industry has increased instances of various security breaches. Therefore, it has become mandatory for IT services providers to streamline their efficiency and improve security in their operations.”
The Business Problem: The client is a well-known IT services provider based in the United States. The IT services company employs around 12,000 people and generates an annual revenue of $30 billion. The client was spending half of their IT budget on suppliers, with no formal oversight, which resulted in increased costs and missed opportunities. This increased the pressure on the IT services provider and compelled them to leverage SpendEdge’s vendor management solutions to maintain both the original value proposition and identify further opportunities for supplier portfolio optimization. They wanted to implement vendor management best practices and increase their overall efficiency, especially when it comes to the security of confidential files. The IT services provider also aimed at enhancing requisitions, approvals, expense management, payment, and reporting and set up a smooth vendor management system by leveraging SpendEdge’s suggestions on vendor management best practices.
Unclear information on the unpredictability of billing and vendor costs can result in revenue losses when not managed tactfully. To know how our vendor management process can help you to save resources, sustain systems and processes, and secure customer information, .
The Solution Offered: SpendEdge’s team of experts helped the managed IT services provider to implement vendor management best practices and access potential supplier risks in terms of both unforeseen cost implications and regulatory compliance. Following the vendor management best practices helped them gain a comprehensive view into the unpredictability of billing and vendor costs that result in lost profits when not managed efficiently. They also gained access to vendor performance tracking, provided spend visibility, cost controls, cost reduction results, document management, process improvement, compliance tracking, and more with the aid of SpendEdge’s suggestions on vendor management best practices. Subsequently, IT services provider was also successful in developing a standard set of processes between departments to select, engage, manage, retain and disengage suppliers with little or no disruption to the enterprise while extracting the necessary value from suppliers.
An unconsolidated vendor management process can increase risks, reduce net profits, increase costs from audits, and decline performance of vendors. and know SpendEdge’s vendor management best practices can help you reduce cost and improve corporate compliance.
SpendEdge’s vendor management process helped the client to:Access potential supplier risks in terms of unforeseen cost implications or regulatory compliance. Gain a comprehensive view into the unpredictability of billing and vendor costs. The rising volume of data can lead to various security breaches in the IT industry. and see how our solutions can help you improve security in your operations.
SpendEdge’s vendor management process also offered predictive insights on:Providing spend visibility, cost controls, cost reduction results. Developing a standard set of processes between departments. Read the complete article to know more:
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