Conducting a contract review
By determining the principle obligations and commitments, we set the parameters and standards that the supplier was expected to achieve when the contract was signed. We find that, on occasion, these expectations are not being met either legitimately (through change control agreed by the parties), or because standards have slipped. These parameters form the benchmark for the evaluation.
Analysing the performance of your supplier
By reviewing the performance reports, service review meetings, anecdotal information and other data sources, we can identify any trends and issues which will inform as to how your supplier is delivering. From this we work with you to understand your objectives and advise you of our recommendations for corrective actions.
Evaluating the total contract value
In our experience, how much you expect to pay often overruns, which then becomes a source of dissatisfaction. We compare your starting budget with the total cost of the contract (both to date and forecast), and we isolate the reasons for any changes. This financial assessment provides you with the information you need to understand why this has happened.
On occasion, we have discovered changes with incorrect charges. In these situations, we will provide you with the information you need to be able to challenge the supplier.
Assessing innovation initiatives
Contracts often contain continuous improvement or innovation clauses which oblige the supplier to take action leading to technology, financial or process benefits. It is sometimes difficult to assess the value of these initiatives and can lead to disagreement between the parties. We will evaluate these initiatives, focussing on what benefits they have brought you. Where possible, we always recommend that any such contractual agreements should include quantifiable and measurable targets.
Actively supporting your supplier relationships
During a supplier evaluation, we have seen the relationship between customer and supplier become tense and on occasion deteriorate. We will take steps to support you through the assessment exercise and ensure your suppliers understand the reason for it and the processes involved. When the conversation becomes difficult, we act as your representatives to preserve your relationship.
Undertaking an impartial assessment of your supplier can set you on the track to successful delivery.
Contact us here to find out how Retonomy can support you in assessing your suppliers.