Contract Vendor Management
SITUATION
Mining operation was experiencing high vendor cost, due to a lack of rigor and focus surrounding the vendor management process.
DRIVER GOAL
- Improve contract vendor management.
RESULT
- Designed and deployed a robust Contract Vendor Management System.
- Implemented service level agreement philosophy throughout the organization.
Case Study
Improve Contract Vendor Management
Issue
A mining operation based in Madagascar was experiencing high vendor cost, due to the rigidity and lack of completion of current contracts, lack of rigor and focus surrounding the vendor management process, and lack of system usage. The Highland Group was enlisted to improve overall contract vendor management.
Highland Approach
The Highland Group performed an analysis of existing processes and systems to identify opportunities for improvement and data inaccuracies. Then the team conducted vendor segmentation and analysis and defined a strategy for reviewing vendors currently under contract.
Actions Taken
- Identified contract cost drivers and implemented reduction targets in consumption.
- Developed robust tracking and control functionality.
- Designed and trained resources on optimized contract management work flow.
- Performed contract owner training.
