Custom designed in-company management and sales training
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Supplier Management Training for line managers in an International Bank
Do you outsource a number of your key business services?
Are some of your line managers responsible for managing these relationships?
To what extent are your outsource suppliers delivering against the service level agreement?
Outsourcing has been one of the highest growth sectors over recent years. Many companies have adopted an outsource strategy, some to the extent of "if it is not our core business we will outsource it to specialists." This trend has meant that line managers in businesses have had to move from managing a team of staff to managing an external organisation. As with all change there are challenges, some of them not identified at the start of the project.
Outsourcing - the role of line managers...
During the selection process the functional managers are working with your purchasing and procurement specialists, people used to supplier selection and contract negotiation. However, these professional "buyers" are not the functional specialists, so the line manager concerned is responsible for specifying requirements and service levels. Typically the line manager is representing the user / customer interests, whilst the procurement specialists focus on the commercial issues. So, line managers do have an active role in specifying needs and identifying potential suppliers.
When the contract is in place, whose responsibility is it to manage the supplier and the relationship? The procurement specialists may be involved in formal contract reviews, and in an escalation procedure when things have gone wrong. However, the everyday running of the contract, ensuring that service standards are being met, resolving issues, managing supplier meetings, is generally within the remit of the line/ functional manager.
Training specifically for Line/Functional Managers...
How frequently are managers trained, as part of the outsource project implementation, in how to manage these external relationships?
In our experience, the answer is often, not at all. Yet the implications of the supplier not being managed effectively are enormous to the business in terms of cost, disruption, and internal & external customer dissatisfaction.
Whilst there is no shortage of training programmes for professional purchasers, the same is not true for functional managers who are involved in selecting and managing external suppliers. Their training needs to be set in a different context, acknowledging that they do not have a full time purchasing role. In response to demand we have developed a practical workshop that can be adapted to your business, integrating the key learning points with your processes and systems. Below is a client example.
Example Client - an International Banking Group...
Our client is an International bank with operations in Europe, United States and Australia. It is one of the world's top 50 financial services companies. A key part of the group's strategy is to outsource all key services so that they can focus on their core business of retail banking. Outsourced services include pensions administration, call centre, payroll, and a range of IT services.
A strategic purchasing group was established, but it was quickly realised that functional managers would also have a key involvement in identifying and working with the outsource organisations. It was also clear that the move to managing suppliers as opposed to in-house staff would present them with certain new challenges.
We were selected to develop a programme, working with the strategic sourcing group to ensure that the training built in awareness of the systems and processes alongside the input and application of skills. The result is a fully integrated programme.
Workshop Approach and Topics
The 2 main aims of the workshop are;
To provide a range of practical mechanisms and tools/checklists for managing the process
To develop their behavioural skills in managing supplier performance and relationships
The 2 day workshop is based on the "Supplier Life Cycle", using a 6 point model: outsource decision, identifying potential suppliers, meeting potential suppliers, selection, managing the performance and relationship and contract renewal. Practically based, participants work on live contracts relevant to the stage of the lifecycle they are involved in. Workshop topics include;
Key criteria for outsource decision
Identifying potential suppliers
Supplier selection matrix
The Service Level Agreement (SLA)
Overview of the RFI and ITT processes
Measuring and validating performance
Risk analysis
Structuring initial supplier meetings
Managing the contract and supplier reviews
Creating positive supplier relationships
Converting suppliers into partners
Handling conflicts and disagreements
Negotiating to create win-wins
Contract renewal
The training has been well received. So far, about 50 line managers have attended the workshop.
Contact us today...if you have a requirement for Supplier Management training for your line / functional managers;
