451 s Procurement and Vendor Management Capability Development Program

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1 The case for improved Procurement and Vendor Management The current market environment is calling for increased operational efficiency and effectiveness, where value for money and market contestability are key themes. A new wave of as-a-service offerings across both ICT and business es provide prudent private and public sector organisations an opportunity to improve internal performance through the enhanced establishment and management of external service provider arrangements. As outsourced, cloud based, brokered and other external partnership arrangements continue to trend heavily in the market, it s never been more important for organisations to establish strong procurement and vendor management capability. Having the appropriate skills and capabilities across your organisation can enhance customer experience, lower risk and deliver a strong competitive advantage. 451 can help 451 Consulting offers unique insight as we possess broad procurement and vendor management experience and a deep background in teaching, coaching and mentoring to embed and apply new capability and learning. Clients benefit from our experience in procurement within Government, GOE s and the private sector where we have helped organisations maximise value, optimise policy and es, manage contracts and rectify poor vendor performance, as well as build internal procurement capability and maturity. Strategic Vendors Transactional Vendors Sourcing Strategy Business Needs Sourcing Strategy Procurement Transition In/Out Business Needs Sourcing Strategy Procurement Procurement Lifecycle Stakeholder Management ICT, Business, Vendors Evaluate Vendor Offerings Market Research Sourcing Evaluation Review vendor capability Vendor Cultural Alignment Market Research Sourcing Evaluation Review vendor capability Selection & Contract Negotiation Vendor Relationship Alignment Sourcing Evaluation Collaborative SLA definition Value for money analysis. Define Contract SLAs Vendor SLA Management Vendor Management Change control Business Needs Met, Value For Money, Lower Risk Set review points Vendor Health Check Contract Gap Analysis Benefits Realisation Measure and confirm adherence to SLAs Change Control Confirm benefits Realisation Vendor Non Performance Collaborate on an Improvement Pilot new Transition to new Vendor Enact dispute Terminate Vendor 451 Consulting 451 smethodologies represent Emerging Best Practiceas they are academically sound AND highly pragmatic which ensures they work in a broad range of organisational cultures and maturity. Our research capability stems from two members of our Executive Team who have many years experience in developing and delivering MBA Subjects at UQ and QUT.Our Program structure takes this best of breed academic coursework to the next level, supplementing these sound theoretic methods with real world Management Consulting know-how. Partnering with you through delivery of our capability development program, 451 provides the knowledge, experience and supporting toolsets to underpin your external partnering success 451 Consulting Pty Ltd Page 1 of 5

2 Our Procurement and Vendor Management Credentials Commercial Management Experience 451 Consulting are market leading multi-disciplinary management consultants with proven general management experience and deep procurement and vendor management knowledge. Each member of the 451 leadership team possesses more than 15 years commercial management experience within complex corporate and government environments, providing a wealth of knowledge to assure your desired learning outcomes. Our leadership team are supported by a number of proven procurement and vendor management career specialists who supplement this general management capability with best practice knowledge, tools and techniques. International Experience 451 combines our 400+ years collective management experience, 16 MBA qualifications, global business experience and a pragmatic instructional approach to provide you with a unique capability development program to enhance your organisational management capacity. Many of our consultants have worked with International consulting firms after establishing hands-on management careers and this breadth of experience is shared with participants through our action learning approach. 451 additionally has a number of consultants who possess proven track records in successfully managing offshore vendors right across the globe. Private and Public Sector Knowledge 451 have a proven procurement track record in the private sector, delivering strong commercial returns and maximising value through both advisory and delivery services. We are also a Tier 1 supplier to the Queensland Whole of Government professional services panel arrangement which includes successful pre-qualification across all procurement consulting and associated capability development requirements. 451 leverages our broad industry knowledge to deliver pragmatic procurement services which align with industry best practice, yet considers the organisational drivers, culture and maturity to deliver fit-for-purpose solutions. 451 s Procurement and Vendor Management 451 Consulting s Procurement and Vendor Management Program represents an excellent capability development experience, with short case studies, tools and techniques, and the application of this knowledge to workplace challenges to create real capability in a supportive learning environment. All 451 capability development programs successfully temper theory with practical advice to help attendees understand whythey need to do certain things when managing external relationships. If people do understand why, they are more likely to remember program material. The coursework is designed for experienced Managers who have a current or imminent requirement to conduct procurement and/or vendor management activities in a project or line management capacity. Due to the experiential learning approaches undertaken, all attendees should bring reallife experience and on the job learning to the program for at least one procurement, vendor management, contractual or external negotiation activity from their past work experience. While the syllabus will deliver a consistent baseline knowledge within the group, participants should be actively seeking to gain tools and techniques that will allow them to leverage their existing experience and skills to become more successful in their commercial interactions with external entities. 451 Consulting Pty Ltd Page 2 of 5

3 Program Syllabus The content of the program is covered in two full-day sessions divided into four modules: 1. Procurement and Contract Management 2. Vendor Management 1 3. Communication and Negotiation 4. Vendor Management 2 Module 1: Procurement and Contract Management Module 1 covers the end-to-end procurement including selecting and engaging vendors, as well as an overview of the contractual requirements for successful contract management. Introduction to the program Selecting the right external partners Strategic vs Transactional procurement Aligning procurement with business needs RFI / RFP / RFT es Probity and Conflicts of Interest Contract renewals best practice Contract terminology and key clauses Contract administration and management Module 2: Vendor Management 1 Vendor Management Stage 1 covers the first half of the topic, focusing on establishing strong and mutually beneficial relationships with external parties. Service Level Agreement (SLA) establishment and management Vendor performance management and KPIs Change control Vendor Health Check Vendor Contract Gap Analysis and Controls Demonstrations, Pilots and Production Transition in Module 3: Communication and Negotiation This module covers best practice vendor communication and negotiation es. Written vs verbal communication approaches Proactive vs reactive communication Reporting and managing poor feedback Vendor engagement frameworks Win/Win negotiation delivers strategic value for money Negotiating new contracts Negotiating contract renewals Litigation overview for managers 451 Consulting Pty Ltd Page 3 of 5

4 Module 4: Vendor Management 2 Vendor Management Stage 2 focuses on problem resolution, relationship recovery and potential vendor termination, as well as acting as a capstone session which integrates components from the previous three modules. Vendor problem resolution Project / Program Vendor Recovery Operational Vendor Recovery When to terminate vendor relationships Transition out Optional Procurement and Vendor Management supporting servicesavailable Mentoring 451 offers attendees an optional and highly valuable mentoring program. For the three months following completion of the Program, we provide one day per month at the client office where any or all of the attendees can come to discuss their specific procurement and vendor management issues and challenges. This is a highly valued service to reinforce the new capability and learning. Mentoring must be scheduled in at least half-day (4 hour) blocks, and we can either coordinate a specific 1:1 discussion with each person of up to one hour, or we can support free flow discussion within groups of 2 to 4 participants (or a combination of both). Procurement and Vendor Management Consulting 451 offers end-to-end procurement and vendor management consulting services to support the entire lifecycle. Our consultants possess deep experience in procurement strategy, governance, vendor selection, key vendor relationship health checks and recovery es, SLA management, commercial negotiation, and a range of additional consulting activities that ensure suppliers are aligned to business requirements and that value is maximised. We offer flexible consulting engagement options from provision of long term personnel, fixed price / fixed outcome projects, risk based fee structures and the delivery of ad hoc reviews and advice. Need to balance Risk against Efficiency Procurement Strategy Into Action Procurement Strategy, Policy, Standards, Targets Prioritise and Select Initiatives Monitor, Audit & Evaluate Governance Outcomes Probity & Transparency Efficiency Outcomes Benefits and Cost Reduction 451 Consulting Pty Ltd Page 4 of 5

5 Examples of consulting activities that may be relevant to you include: Reviewing specific contracts with the objective to ensure services are aligned to business needs, and remove unnecessary cost Conducting market scans to confirm contract values are competitive with current market rates for similar services Management of external vendors as an independent third party Providing professional advice and recommendations regarding contract issues, clarification of clauses, conflicts or other matters having material impact on the business Assisting with or lead renegotiations of contract terms with vendors Managing RFI / RFP / RFT es. Contact Us 451 Consulting is highly confident in our ability to support your Procurement and Vendor Management capability development requirements. Talk with us about your needs and your objectives. We can specifically tailor our program to deliver your outcomes. We look forward to partnering with you. Please feel free to call our office to discuss any queries or additional requirements on Consulting Pty Ltd Page 5 of 5

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