Supplier Management Office / Center of Excellence

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    • #292280

      This SIG buy-side member from the high tech industry is conducting research on Supplier Management Offices (how to set one up, best practices, what typical problems are they tasked to solve, what does the infrastructure/organization look like, etc.).

      The member would like to speak with some larger organizations that operate a SMO, preferably in the indirect space (e.g. professional services), but direct materials could be interesting too.

       

    • #293867

      Supplier management office is typically not a standalone function as supplier management cuts across different category management functions; most procurement organizations are organized by category and each category leader is responsible for managing their portfolio of suppliers under a preferred supplier management program. Supplier management programs cover a gamut of focus areas – contract management, quarterly business reviews, product/service delivery metrics, sustainability, risk management, and continuous improvement, to name a few. 

       

      Having said that, there are two areas where a supplier management office may help:

      1.Spot buys – any item/service that requires to be triple bid due to procurement policy requirements may benefit from a spot buy desk. Typically, these suppliers are not managed strategically (consider a florist who waters the plants in the offices) and it may benefit from supplier management office.

      2.Typically, master data maintenance on ERP is a big challenge – over time, suppliers have multiple entries in the system and it becomes clunky; since it has payment related data, there is always friction between Finance and Procurement from a master data cleansing standpoint. It is a tedious task and there will always be duplicate entries regardless of the controls in place – however, the number of duplicate entries can be minimized and kept in check so long as there is rationale for doing so.

      Ashwin Kumar

      GEP

      [email protected] 

    • #293868

      My firm, Neo Group (www.neogroup.com), has the advisory experience and expertise to assist this SIG member.  We have supported clients with Supplier Management Office definition, launch and operatrions, including change management and communications.

       

      I would be happy to discuss further with the SIG member team.

       

      Regards,

      Al

       

      Al Crew  |  Partner and SVP  |  Neo Group

      [email protected]  |  C: 651.428.9516 

       

    • #293869

      My firm, Neo Group (www.neogroup.com), has the advisory experience and expertise to assist this SIG member.  We have supported clients with Supplier Management Office definition, launch and operatrions, including change management and communications.

       

      I would be happy to discuss further with the SIG member team.

       

      Regards,

      Al

       

      Al Crew  |  Partner and SVP  |  Neo Group

      [email protected]  |  C: 651.428.9516 

       

    • #293870

      I’ve set them up for our internal knowledge process outsourcing, have also run a SW business inside a boutique that does this, and have helped several clients deploy a vendor management module. Also, have done supplier segmentation, and am now working with clients to integrate Supplier Management to address both 1. Risk/Compliance and 2. Operations. 

      Mark J Voytek
      EY
      [email protected]

       

       

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