Vendor Value Mining
Misalignment between business needs, technology agreements, and vendor performance creates overhead and waste.
Vendor Value Mining is our process for finding the missing value in the agreement and the unrealized full potential of the relationship.
Banyan Vendor Value Mining
Vendor Value Mining is a lean consulting process that uncovers hidden value in vendor relationships. Through lean sprints, we optimize your vendor relationships and create:
Visibility into the business value delivered and the tangible and intangible costs of supporting the vendor.
Actions for achieving the full value of the agreement and potential value of the function.
A foundation for creating a True Partnership that delivers differentiating innovation.
A Banyan Vendor Value Mining engagement helps companies improve operations and business outcomes, prepare for competitive selection processes, and develop a vendor management strategy.
1. Define ‘Quality’
How does the contract define success? Is this definition relevant to the business and the service owners? Is it appropriate when compared to the greater market? We first create agreement on the placement of the goal posts before counting the score.
2. Gauge Performance
Performance metrics help us take the politics and subjectivity out of the conversation. Is the vendor performing against SLA and KPI standards or business requirements? Is the relationship strong or struggling? What are the risks in the relationship?
3. Determine Potential
What does the full value of the agreement and the full value of the function look like for the business? What Next Best Alternatives should be considered?
4. Take the Next Step
Depending on the objective of the engagement, potential of the function, and performance of the vendor, we develop recommendations to improve performance and meet business objectives.
Outcomes of a Vendor Value Mining Engagement may include:
- Vendor Portfolio Optimization – looking across multiple related vendors for opportunities to grow, terminate, rebid, or consolidate vendors.
- Streamlining operations – developing runbooks, relationship charters, communication planning, joint operating procedures (between multiple vendors), and Get Healthy planning.
- Performance metrics – dashboarding for KPIs, and SLAs, Quarterly Business Review (QBR), shared objectives and metrics, and experience-based metrics.
- Partnership development – Creating a business case for partnership, co-investment, and executive alignment.
Let us know how we can help you improve your vendor outcomes.