Next Generation Vendor Management with ServiceNow

Situation

Clients are increasingly using outsourcing solutions to provide innovation for their businesses, leading to the next generation of integrated Vendor Management Organizations.

Vendor Management Challenges

• Bringing together diverse vendors in a fragmented environment
• Limited view of vendor performance due to lack of monitoring mechanisms
• Alignment of client and vendor objectives to ensure sustainable relationships
• High complexity and cost of managing multiple service providers

In order to realize potential outsourcing benefits, new vendor management capabilities and common services have to be established in order to increase vendor management effectiveness and vendor collaboration in a complex and diverse multi-vendor environment. We recommend to evolve the ecosystem around vendor management from a siloed to an integrated and collaborative approach.

Vendor Management Suite capabilities

VMS provides fully integrated features for all involved ecosystem parties and leverages a set of focused vendor management services to increase vendor management effectiveness. These services are offered with a single common ServiceNow platform providing maximum transparency and sets up collaboration between all parties. The technical platform brings new visualization capabilities and shows vendor health status and other relevant information in real-time through (executive) dashboards.

Vendor Management Dashboard

Unparalleled transparency and governance of outsourced services through monitoring of vendor performance and contractual obligations using the vendor management dashboard.

Key Takeaways

• Vendor Management Organizations (VMOs) have to adapt to next generation outsourcing models with multiple vendors and different service types.
• To achieve the benefits from these next generation outsourcing models, VMOs have to be equipped with new vendor management capabilities to manage a complex multi-vendor ecosystem.
• We recommend a service integration and convergence approach to overcome the challenges arising from increasing complexity, transparency and the increasing need of vendor collaboration.
• Deloitte's vendor management suite is a common integrated platform and managed service providing a set of focused capabilities to realize the potential benefits from innovation driven models and to reduce costs.