CONTRACT FAILURE? NOWHERE LEFT TO HIDE.

One of the biggest challenges facing senior Procurement Leaders and Contract Managers today is effective monitoring of complex, global supply chains. That is why Procurement Heads are delighted to be working in partnership with Solvassure, experts in the delivery of ‘real time’ business assurance solutions and leaders in profitable innovation for some of the UK’s largest brands.

In the following article, Solvassure’s Founder Clive Godwin explains the unique benefits that this innovative technology brings and why it is set to transform the way compliance metrics are collated and reported.

CONTRACT FAILURE? NOWHERE LEFT TO HIDE.

By Clive Godwin

Despite sophisticated e-procurement solutions and modern collaborative technology, there continues to be no shortage of suppliers who are unable to deliver to contract. In a recent and well documented case, the failure of the BBC’s outsourced Digital Media Initiative ultimately cost licence fee payers £98.4m*. Scratch below the surface and it’s not hard to understand why resolving issues with vendors costs UK businesses more than £10bn a year in resource time alone**. Add to this the real cost of inadequate supply chain monitoring and the outcome looks at best like a missed service credit opportunity, or at worst like a reputational crisis.

 

Contract managers need timely, accurate and relevant information at their fingertips, but staying on top of a global supply chain can be a time consuming, frustrating and costly process. With traditional contract management tools unable to provide instantaneous monitoring, new mobile business assurance technology could provide the answer. By reaching into the supply chain in real time, service level breaches are highlighted to nominated stakeholders in an interactive dashboard the moment they occur. A cloud based solution achieves this by automating pre-defined checks with supplier activity owners anywhere in the world, based on the terms of the contract and verified by supporting data. Whether it’s checking if a factory worker has been issued with protective clothing in Mumbai, making sure a weekly budget report has been generated in London or verifying that a regulatory obligation has been fulfilled in New York, no stone is left unturned.

 

Not only does this solution reduce the resource costs associated with supplier monitoring, it overcomes the challenges involved in identifying service credit recovery data. Moreover, it should also be possible to derive benefits from a best practice knowledgebase which can be re-applied to each contract, along with stronger negotiating positions secured from auditable evidence. With the mobile application able to pinpoint the exact location of an individual when an answer is provided, those responsible for the supply chain failures of the past might well have nowhere left to hide in the future.

 

*The Economist – June 2013 http://www.economist.com/blogs/blighty/2013/06/bbcs-hi-tech-failure

**Real Business – Dec 2013 http://realbusiness.co.uk/article/24873-problems-with-suppliers-costs-uk-businesses-more-than-10bn-a-year

 

Clive Godwin is Founder of Solvassure – Business assurance solutions that inspire confident decision making.

www.solvassure.com

 

About the Author

Helen Harling

Office and Marketing Manager for both Procurement Heads and sister brand HR Heads. Graduating with a marketing degree, Helen has continued her passion by leading our marketing function forward. You will see her blogging, tweeting, posting, videoing about Procurement Heads. You can see this on our LinkedIn, Facebook, Twitter, Google+ and Instagram page.

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