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Hubbard Foods  – The way forward

The Challenge

Board and executive management were aware of shortcomings in supplier consideration within the business and identified the need to effectively manage this. This included stakeholder vs. supplier associations, supplier performance evaluations, commercial risks associated with contract governance and how the flow on effect of these behaviours had the potential to directly impact hidden costs in the business. In order to achieve this the business required the ability for ongoing measurement of the effectiveness of any proposed solution.

It was desirable to not only have clarity of the situation in financial terms, but to also create awareness of the impact of supplier engagement on organisational efficiencies and commercial business risks.   

The Solution

Vendor Management completed a Supplier Landscape Audit that provided an organisational benchmark of supplier engagement and outsource management culture within the business. We captured and measured the volume of supplier issues with their associated performance management requirements. Additionally, we examined their contracted service level agreements (SLA’s) and key performance indicators (KPI’s) and cross referenced these against the businesses predetermined key supplier list. Collectively this information provided a measurable gap analysis of identifiable business risk and potential core business impacts in a quantifiable manner.

From this analysis we then provided one-on-one training, created centralised information repositories, documentation consistencies and renegotiated key supplier contracts where it was strategically desirable and mitigated any commercial exposures. 

The Results

Hubbards was typical of many organisations that underestimate the resources and expertise required to properly manage supplier and outsource engagements. The benchmarking exercise provided Hubbards management with visibility of their exposures. These exposures were then alleviated by the introduction of methodologies and task oriented tools for tangible advancement and rectification to a strategic aspect of the business that had been historically overlooked.