Getting Your Vendors to Flock Together
- 04 February, 2008 12:53
- Comments
VENDOR MANAGEMENT | Keeping track of bids, vendor performance, previous contract terms, alternative providers and technology differences was taking too much time for Bernard "Bud" Mathaisel as he settled in as CIO of electronics manufacturer Solectron in 1999.
Many of Solectron's vendors were also customers, which just complicated the job politically. Seeking a more disciplined approach, Mathaisel partnered with Solectron's assistant procurement officer, Jeff Dixon, to create a virtual vendor management office (VMO) staffed by IT and procurement employees. "The result is that the CIO could be a decision maker without having to run the process," Mathaisel says. Now CIO of manufacturing outsourcer Achievo, Mathaisel brought that discipline with him.
Likewise, Dixon has brought it to Cisco Systems, where he is now director of enterprise software and outside services for IT vendor management services. "We take care of the trees and let the CIO focus on the forest," Dixon says.
Dixon estimates a tenfold return in the staffing investments of a vendor management entity - from better deals through consolidated purchasing, and from avoiding the costs of straightening out piecemeal or short-term deals later. "That doesn't even count the intangible benefits, such as having a flexible contract or reducing supplier risk," Dixon adds. Following a similar approach, Accenture CIO Frank Modruson calculates that his company has experienced significant savings.
Creating a formal vendor management office is smart, says Marc Cecere, a VP at Forrester Research, yet many enterprises have not done so. A July 2006 Forrester survey showed that 47 percent had some sort of formal vendor management groups - but 90 percent of the rest had no intention of doing so. Such enterprises risk being at the mercy of savvier vendors, he warns.
Most enterprises underestimate the need to actively manage their vendors, concurs Judith Hurwitz, president of consultancy Hurwitz & Associates. Their IT staffs often lose the perspective needed to ensure they're getting the best value from the relationship, she says, as the emotional connections nurtured by the vendor take hold. "That's why the vendors' salespeople are paid so much," she notes.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
- Bookmark this page
- Share this article
- Got more on this story? Email CIO
- Follow CIO on twitter
-
Australia's first 4G smartphone is the HTC Velocity 4G
-
Swedish e-commerce startup's execs linked to NYC sex crime
-
Face Time - Interview with John Brennan and Robert DiStefano
-
How to implement next-generation storage infrastructure for Big Data
-
Pfizer's Future Depends on IT Transformation
-
Think print, Think security - Plugging the printer security gap
The widespread use of networked printers and multifunction peripherals (MFPs) which scan, print, fax, copy and email has increased productivity in the production of all types of business output. However, the growing sophistication of these devices has also increased security risks associated with printing. Network connectivity, along with hard disk and memory storage, means that MFPs are now susceptible to many of the same security risks as PCs and servers alongside the traditional risk of sensitive printed output getting into the wrong hands. However, all too often the security of the print environment is overlooked and little is done to mitigate these threats. Read more. -
Get the Whole Picture Why Most Organizations Miss User Response Monitoring—and What to Do About It
You can be armed with vast amounts of performance metrics, but if you don’t know what users are actually experiencing, you don’t have the real performance picture. While this measure is critical, it is one many organizations fail to consistently capture. This guide looks at the challenges of user response monitoring, and it shows how you can overcome these challenges and start to get a real handle on your infrastructure performance and how it impacts your users’ experience. -
Spear Phishing Attacks - Why they are successful and how to stop them
There's been a rapid shift from broad, scattershot attacks to advanced target attacks that have had serious consequences for victim organisations. The increased use of spear phishing is directly related to the fact that it works, as traditional security defences simply do not stop these types of attacks. This paper provides a detailed look at how spear phishing is used within advanced attacks and the key capabilities organisations need in order to effectively combat these emerging and evolving threats.
Get exclusive access to Invitation only events CIO, reports & analysis. 
Comments
Post new comment