Vendor Portfolio Optimization
Vendor sprawl creates unnecessary complexity, raises vendor carrying costs, and obscures poor vendor performance. It breaks the connection between technology spend and business value and creates distractions from working to improve the business.
Banyan uses an agile consulting approach of 2-week sprints to survey the vendor portfolio, analyze key vendors, and put our findings in context.
1. Vendor Portfolio Discovery
Initial discovery includes setting project objectives, gathering a list of vendors, and initial scoring. This step sets the stage for the project and often surfaces problems and risks for immediate action. Similarly, low-hanging fruit, such as overlapping agreements with the same vendors, waste on unused systems and relationships, and other inefficiencies may emerge.
2. Vendor by Vendor Review
We review each vendor relationship to a level of depth appropriate for their importance to the client’s business. We determine their performance, ability to partner, and next best alternatives. We produce a vendor score card for ongoing governance and recommendations for achieving the full value of each relationship.
3. Vendor Portfolio Optimization
We contextualize the results of the vendor by vendor review by mapping the interdependencies, overlaps, and gaps among vendors and with internal delivery teams. We submit final recommendations, which may include vendor consolidation.
Let us know how we can help you improve your vendor outcomes.