DNA of Great Vendor Management:

Transcription

1 DNA of Great Vendor Management: How to Get It Right Using Automation Ancestry Trevor Lucas Sr. Director, Partner Management Enlighta Nipun Sehgal President & CEO sig.org/eval

2 Trevor Lucas Senior Director, Partner Management Ancestry Nipun Sehgal CEO and Co-Founder Enlighta Ancestry / Enlighta DNA of Great Vendor Management: How to Get it Right Using Automation October

3 Agenda and Approach This session will present the challenges faced with managing strategic supplier relationships and how to leverage best practices and automate processes using tools of Supplier Governance. We will focus first on the theory and then shift to a real world example of these principles in practice. We hope this session will be particularly interesting to sourcing executives and vendor management professionals dealing with supplier governance, compliance and risk management (or anyone in a relationship). 3

4 Audience Poll How would you describe your current vendor governance processes? a. Vendor governance processes.don t the vendors do that? b. Inconsistent and undefined but hey, we use spreadsheets! c. Processes defined and documented but labor intensive d. Technology enabled with streamlined processes 4

5 Enlighta Background Since 2002, providing best-in-class Supplier Governance & Third party Risk management solutions HfS Winner s Circle Enlighta provides the broadest and deepest set of functionality that HfS has observed to-date. It is a very flexible and scalable solution that was highly rated by its clients. San Ramon, HQ Global Delivery Centers SSAE 16 Hosting Dedicated Cloud Hosting (AWS) Option for Client On-Premise Hosting Managed Supplier Governance Tool used by Leading Advisors Customer Adoption- 50+ direct clients and partner deployments Only Tool deployed by all 3 players Buyers, Advisors, Suppliers as clients Proven and enterprise grade; working with F500 clients since "Enlighta has proven to be a powerful solution for enabling efficient outsourcing governance. The support provided both during and since implementation has been outstanding." - Project Manager, F500 Financial Services Sample Deployments

6 What we want from relationship The DNA of Vendor Management Best Value Available Contract Compliance Performance Planning/Validation Project Bidding Obligations/Audits SLAs/KPIs/Scorecards Forecast/Invoice Validation Fair Selection Process Clarity of Expectations Objective Assessment On time Payment What suppliers want from relationship... requires use of a scalable, adaptable supplier management & governance platform 6

7 Contract Core Solution Capabilities for Supplier Management Performance Financials Relationship Resources Supplier Register Supplier Profile Contacts Capabilities Ratings Certificates Sites Hierarchy Sub-Contractors Risk Management Supplier Risk Profiler Contract Risk Profiler Risk Register Action Plans Risk Monitoring & Alerts Audits & Findings Risk Scorecards Contract Register Pricing: Transactional, Fixed, Rate Card ARC/RRC Dead-bands Contract Requests Contract Issues Interpretations Spend Pool Mgmt. Service Requests Service Levels definition Internal SLA computation External SLA import Mgmt. Dashboards Metric Reports Deliverables & Obligations Balanced Scorecard Invoice Validation for consumption, pricing Disputed Charges Service Credits and Earnbacks tracking Consumption Management Spend Actuals, Budget and Forecast & Variance Governance Issues Engagement Level (Meetings, Action Items) Communications Supplier Assessment Ideation Survey Management Skills and Experience Visa and Work Permits Project/Service Allocations Workplace History Billing Rates Requisition and Best Match Preferences of Location and Skills Supplier Management Data Analytics Role-based Workflow, Secure Access, Configurable Processes 7

8 Supplier Management Simplified 8 Clients solutions often are configured for client-specific rules, processes and interfaces

9 Theory is great but how does it work in the real world? Let s look at an Ancestry Case Study. 9

10 Ancestry Background Helping customers discover their ancestors by providing access to 18 billion historical records, 80 million family trees. Six keying vendors with 1,500+ ftes working on 300+ indexing projects per year to make new historical content searchable to customers. Long-term partnerships: Been working with some of our keying vendors for 12+ years. Pricing, service levels and completion deadlines vary from project to project. 10

11 Vendor Governance Challenges Previous vendor governance processes: Pricing, project completion timelines, service levels all informally established through Manual tracking of project completion status No formal performance feedback mechanism to vendors Thousands of billing line items details per month difficult to reconcile and approve invoices Historical cost trends difficult to aggregate and analyze Pricing used in forecasts outdated / not reflective of recent trends 11

12 Ancestry s Tool Selection Criteria Easy and cost efficient to adapt to specific business needs without needing custom implementation Well suited for a BPO setting, and should also be able to support IT, Telecom and other strategic suppliers Scalable pricing model that allows for easy ramp up to additional suppliers/users; self-service onboarding Doesn t try to upsell or bundle consulting services with the tool Scalable solution that could support global operations and large volume of data (thousands of RUs, millions of audits) 12

13 Audience Poll What are the areas in your supplier management organization that would benefit most from tool / automation support? a. Supplier performance management b. Bidding and selection of existing suppliers for new work c. Risk management and supplier communication d. Invoice validation prior to approval for payment e. Streamlined work-order, change, issue mgmt. processes f. All of the above g. Something else 13

14 Governance Enhancements: Bid Management 14 Bid cycles formally administered by tool, including the awarding of winning bids, notification of losing bids, requests for re-bids, etc.

15 Governance Enhancements: Contract Management 15 Electronic repository of contracts: establishes pricing, quality and timeliness expectations Routing of contract to designate contacts for approval

16 Governance Enhancements: Production Management Automated project status tracking with forecasted completion date 16

17 Governance Enhancements: Detailed Audits Agent/Field-level audits - scalable to millions of audit and performance records 17

18 Governance Enhancements: Performance Management Balanced Scorecard combines system generated service level metrics and stakeholder survey input (all administered within the tool) Performance Management: attainment of contracted service levels (quality, timeliness, etc.) Business Support: contract management, project management, reporting, billing, issue resolution Account Management: communication, staffing, leadership, innovation 18

19 Governance Enhancements: Invoice Management System validations ensure: project rates match bid / statement of work quantities match work produced work is not billed until it s passed audit Tool routes invoice to necessary contacts at vendor and Ancestry for approval 19

20 Governance Enhancements: Forecasting Tool s bid & actual pricing data used to forecast future spend Able to track real-time variance to forecast by project, category and vendor 20

21 Key Takeaways There s not a one-size fits all vendor management solution. Look for a solution that s rapidly adaptable and scalable for your organization. A little investment up-front can enable vendor management resources to shift away from being administrative task-doers to focus on more strategic and value added activities. Don t shy away from some initial up-front investment. If done right, the ROI can be significant (not just $ but more informed vendor decisions). 21

22 Things to do Today Ask yourself the following questions: How manual are my company s vendor management processes? What resources could be freed up if the manual processes were automated? How much do those resources cost? Is there value in re-deploying those resources to more strategic work? If your responses justify additional exploration of utilizing an automated vendor management tool, please send an to nipun@enlighta.com for a free supplier governance / relationship management tools capabilities assessment matrix. 22

23 Trevor Lucas Senior Director, Partner Mgmt. Ancestry Nipun Sehgal CEO and Co-Founder Enlighta Trevor is the Sr. Director of Vendor Management at Ancestry based in Lehi, Utah where he is responsible for Ancestry s BPO vendor operations. Prior to working at Ancestry, he led the Vendor Management Office at Transamerica which was responsible for the global IT and BPO sourcing. Trevor s vendor management career began at Blue Shield of California, where he launched and led several sizeable new vendor operations over the course of six years. Nipun is the Founder & CEO of Enlighta; Enlighta s solutions have been deployed by global 2000 enterprises to simplify and streamline performance management, risk management, contracts compliance, relationship and financials management across strategic supplier relationships. Over the last 25 years (including 10+ years at Enlighta), Nipun has been involved with architecture, implementation and deployment of enterprise grade web solutions and middleware for Global 2000 clients. Nipun s interests and focus areas are enterprise-class solutions and platforms for complex, challenging and big problem areas that remain unaddressed in enterprises. He has extensive and diverse vendor management & strategic sourcing experience, ranging from traditional mailroom, call center, claims and data entry operations, to finance, actuarial and IT application development operations. 23

24 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Session (#14) COMPLETE & SUBMIT EVAL

25 Session #14 DNA of Great Vendor Management: How to Get It Right Using Automation Speakers: Trevor Lucas Senior Director, Partner Mgmt. Ancestry Nipun Sehgal CEO and Co-Founder Enlighta Download the App: bit.ly/sigfall16 Tweet: #SIGfall16

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