Reduce Vendor Cost - A Process Improvement Case Study

The Situation: Small Private High Tech Company

  • Vendor costs for services were escalating at a rapid rate.
  • Vendor contracts were agreed on with unclear IT specifications. Changes were made as the work progressed. Vendors charged more to cover the changing requirements and "scope creep".
  • There was an adversarial relationship between the creative department and the IT group concerning technical requirements. 

The Goal:

  • Develop a process to support cross functional teamwork.

The Solution:

  • Teach leaders and other team members to shift from blaming and complaining about what isn't working to a focus on what is best for the company.
  • Improve influencing and conflict skills to assist the managers and staff of the creative and IT departments to collaborate on the development of technical specifications.
  • Develop accountability and leadership skills to manage vendors, gain commitment and agreement on what will be delivered when, and hold themselves and vendors accountable.

Services Provided:

The Results:

  • The client saved $200,000 on a $1,000,000 dollar deal with one vendor. The quality of service was excellent and the timing improved,
  • The creative and IT departments developed a positive working relationship.
  • Management and staff in both departments are excited and committed to continue to improve costs and vendor service.
  • The expectations of the President, creative and IT department management is that they will increase their bottom line profits by hundreds of thousands of dollars as they apply what they've learned.

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