Supplier Relationship Management and Contract Compliance

The client.

A large financial services organization.

The business issue.

Recent changes in industry and governmental regulatory requirements dictated a renewed emphasis on actively monitoring and reporting on supplier performance and contract compliance.

The company engaged Claro Group professionals to perform a review of its existing procurement processes, organizational structure and technology tools in order to:

• Identify opportunities for improvement.
• Design a way to capture those opportunities.
• Implement the new tools and processes related to supplier performance management and contract compliance.

The solution.

The project team assessed existing supplier performance management policies, procedures, tools and metrics. In addition the team conducted a gap analysis of processes, templates and procedures related to contract compliance.

Based on these findings, the team developed a comprehensive supplier performance management program that included:

• Strategic supplier program with tiers and qualifications.
• Supplier performance management surveys, database and reporting tools.
• Policies, procedures with processes and management tools.

In addition the team created contract compliance polices and procedures and developed a cross-functional organization oversight committee and audit team. It led the implementation planning for the program and supported the company with communications, change management strategies and tools, and progress/status reporting throughout implementation.

The results.

This approach enabled the company to:

• Gain organization-wide visibility into supplier performance through reporting and key metrics. The new systems and processes rolled up reporting across the organization and provided the capability to drill down by contract.
• Improve supplier performance by clearly defining expectations and incentives, actively monitoring performance, and establishing a clear escalation path.
• Renew its focus on compliance with contractual regulatory requirements through education, oversight committee monitoring, and an audit function.