CASE STUDY
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
168
SUPPLIER MANAGEMENT FRAMEWORK
The framework was welcomed by key stakeholders and quickly delivered tangible benefit. For example, a strategic technology supplier was experiencing performance, people and financial difficulties in 2012. All risks were identified through the close management of the relationship, following the framework. Regular financial checks, open dialogue with the supplier’s staff and clients, and visits to offices to review capacity led to the supplier management team leading and implementing an insourcing project. The project transferred over 30 supplier key personnel across to LV= CIO to protect this critical service. Just six months later the supplier entered into liquidation. Within 12 months, this project delivered over £1.2 million of sustainable budget reduction and mitigated significant operational, customer data and financial risk.
The supplier management team promised they could take away my supplier frustrations. I'm now getting better performance, better quality, and better value thanks to the consistency and clarity provided by the Supplier Management Framework. Steve Martin, LV=
TECHNOLOGY ENABLEMENT
To add an additional layer of long-term value, LV= selected State of Flux Technologies to implement a centrally managed technology- enabled solution to capture all aspects of a relationship, and deliver a secure environment for consistent and transparent supplier management throughout LV=. The State of Flux Technologies Supplier Management Platform was the chosen technology solution for LV=, particularly because of its analytical and reporting functionality, alongside the security and general integrity of the system. Branded ICO (Innovate, Collaborate and Operate), the solution was rolled out to six phase one strategic suppliers in eight weeks. Training was jointly delivered to the key supplier account managers. In collaboration with State of Flux Technologies, an industry leading LV= supplier management capability has emerged and in less than 24 months. Priority one service outages have reduced by 60%; cost by 9%; stakeholder satisfaction is at 98.9%; talent management at the core of the agenda; a technology enabled environment is driving defined value and innovation from key relationships; and risk and complexity has been removed from the supply chain. LV= and State of Flux Technologies worked together to further develop ICO. Both parties recognise the mutual benefit to be gained.
ICO SUPPLIER RELATIONSHIP MANAGEMENT SYSTEM ICO is a web-based and hosted platform for managing our key suppliers, ensuring we can quickly and easily share key relationship information. It ensures that both LV= and our suppliers share a common view of the relationship, and provides
tools that enable us to collaborate more effectively and drive innovative thinking.
Working in collaboration, LV= and State of Flux Technologies have enhanced the system to deliver industry leading innovation, supplier assessment and contract management technologies.
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