Anticipating inherent risks rather than simply reacting to adverse situations and incidents could NOT ONLY save your organization $1,000 of dollars trying to fix, but your also risking the reputation of your business and in some cases – the loss of your business! Vendors who are critical to your operation, and whose failure or inability to deliver contracted services could result in the loss of business!
Benchmarking is one of a manager’s best tools for determining whether the company is performing particular functions and activities efficiently, whether its costs are in line with those of competitors, and whether its internal activities and business processes need improvement.
Not only are most agreements written where they can be changed and modified at any time, but notification of the changes is your responsibility to keep track of. Who is responsible in your organization for keeping track of changes in provider contracts and agreements?
How can procurement and vendor management become more aligned with, and demonstrate its impact on, the main measures of business success? What impact does procurement make on a company’s sustainable shareholder value? This is a question that CPO’s face but few have been able to answer.