Contract Vendor Management

NEEDS-BASED RESULTS

 

Contract Vendor Management

SITUATION

Mining operation was experiencing high vendor cost, due to a lack of rigor and focus surrounding the vendor management process.

DRIVER GOAL

  • Improve contract vendor management.

RESULT

  • Designed and deployed a robust Contract Vendor Management System.
  • Implemented service level agreement philosophy throughout the organization.
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Case Study

Improve Contract Vendor Management

PDF

Issue

A mining operation based in Madagascar was experiencing high vendor cost, due to the rigidity and lack of completion of current contracts, lack of rigor and focus surrounding the vendor management process, and lack of system usage. The Highland Group was enlisted to improve overall contract vendor management.

Highland Approach

The Highland Group performed an analysis of existing processes and systems to identify opportunities for improvement and data inaccuracies. Then the team conducted vendor segmentation and analysis and defined a strategy for reviewing vendors currently under contract.

Actions Taken

  • Identified contract cost drivers and implemented reduction targets in consumption.
  • Developed robust tracking and control functionality.
  • Designed and trained resources on optimized contract management work flow.
  • Performed contract owner training.

Identified savings of

$3m

through key contract analysis

Related Information

industry-based

subject matter-based

Senior Consultant

Supply Chain

Europe

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Senior Consultant

Working Capital

North America

Joe is an innovative and versatile professional with over 25 years of solid experience building, growing and operating diverse, multi-faceted and geographically dispersed global high-growth organizations. He has an exceptional track record of managing projects that deliver credible and sustainable improvements in cash management, operations, service quality and cost.

Project Director

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Hamid has over 20 years of experience as a management consultant. He has a wealth of experience in process and operational improvements, corporate strategic planning, development and deployment, global sourcing, supply chain management as well as working capital improvement experience (A/R, A/P, Contract & Vendor Management, Inventory, MRO/Materials & Supplies).

Senior Analyst

Mining

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Luis is an executive with more than 15 years of experience in managing various mine implementation projects. Most recently, he has been the Lead Analyst for our Discovery and Design process. He is responsible for the assessment and quantification of opportunities as well as developing sustainable solutions for our clients.