CASE STUDY CASE STUDY
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
166
CASE STUDY
Less than 12 months on from the publication of the previous case study, this is the feedback the supplier management approach and framework developed by Tom Lewers and his team is getting from LV=’s senior leadership team.
If it wasn't hard, everyone would do it. It's their ability to evolve, adapt and remain in tune with business priorities that make the LV= difference. Supplier Management support my Partnership team in external market bids and through the whole relationship lifecycle. They have extended
Collaboration at its best, embracing our mutual values and delivering a blueprint of partnering excellence. Mike Rogers, CEO
and matured their scope beyond transactional procurement into a strategic sourcing and supplier management capability. Richard Rowney, MD, Life & Pensions
It is in the area of supplier risk management that the Supplier
Management teamare making the greatest impact. The management andmitigation of supply chain risk, to include the highest levels of service delivery and availability, are critical to the General Insurance business. It’s reassuring that Supplier Management teamunderstand how to drive the fullest overall value fromkey relationships, particularly our technology partners. John O’Roarke, MD, General Insurance The Supplier Management team demonstrates the behaviours and insight required to take good practice to great. Technology is of course at the core of the digital agenda and partnering successfully is a key differentiator here. The team has as a direct result evolved into a leading edge capability, growing in size and scope along the way, and winning the hearts and minds of challenging stakeholders. RichardWarner, Chief Information Officer
So what was the context and how was this achieved?
Well, the 2011 background was £3 million in lost revenue from poor supplier performance. Critical outsourced customer data contracts were not managed and under regulatory pressure. LV= needed to radically change the way it managed its key suppliers. With approval and sponsorship from the LV= board, sourcing and supplier management was formed. Alongside the existing sourcing capability, the team’s prime objective was to become the LV= centre of supplier management excellence. Three near term deliverables for the supplier management programme were to build a talent management pipeline; embed a supplier management framework across LV=; and deliver defined cost, service delivery, risk and relationship value.
SUPPLIER MANAGEMENT PROGRAMME STRUCTURE
To achieve a level of recognised excellence, a specialist partner was selected. State of Flux was identified as having the right culture, capability and tools to partner with LV=. This is where LV= put its collaboration model into practice.
PROGRAMME PLANNING & PROJECT GOVERNANCE
SUPPLIER SEGMENTATION & APPROVALS
ESTABLISH STRATEGIC SUPPLIER MANAGEMENT TEAMS
FACTS & DATA BASELINING ON STRATEGIC SUPPLIERS
CREATE & APPROVE RELATIONSHIP STRATEGIES
SUPPLIER ENGAGEMENT, MOBILISATION & WORKSTREAMS
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