Case Study #4404 - Vendor Management Process : Government

The Situation

A major State Government Department had a large number of Vendors delivering a range of managed services, product supply and support, and projects services through a variety of contractual agreements.  They were faced with the challenge of managing this multitude of vendors and contracts with a very small internal team.

The Department recognised their challenge in ensuring that all vendor contracts were being adequately managed, benefits fully realised, and conditions of contract adhered to.

Our Approach

We developed a vendor and contract management framework for the Department which took account of its resource constraints whilst enabling it to meet the challenges. That framework addresses:

  • Categorising contract and vendor types to allow the internal team to focus attention where it is most needed
  • Recognising different lifecycle stages in procurement, from business case, procurement, execution, and 3 alternate outcomes before further procurement
  • Recognising the five core vendor and service management roles
    • Performance management
    • Financial management
    • Relationship management
    • Contract administration & Risk management
    • Managing innovation
  • Identifying key organisation stakeholders, and their roles in providing and supporting an holistic vendor and service management function
  • Developed an approach for managing both complex contracts / major vendors and simple contracts / minor vendors, with a limited number of staff

Client Benefits

The Department has a framework that allows it to effectively manage its diverse and ever-changing set of contracts and vendors with a small internal team.  There is recognition that other stakeholders in the Department and Government play a key role in supporting that management function.  There is also recognition that the level and type of management required varies depending on the lifecycle stage of the contract and the risk posed to the Department by the contract or the vendor.

Further Information
For more information, please contact our lead Director for this engagement.
Mark Probyn
mark.probyn@cherubconsulting.com.au
0419 376 411