In today’s marketplace, insurers are relying on an ever-increasing number of third parties for essential business functions. Businesses spend a large amount of time contacting vendors to invite quotations, and then following up to learn about the progress.  A well-designed vendor management tool can handle and manage any opportunity and multiple vendors from a single location while also handling core business operations. Every new agency or supplier relationship requires nurturing to ensure there is maximum ROI. Our client is a billion-dollar American insurance company that offers annuities for retail investors and fixed income products for institutional investors. The company’s subsidiaries and affiliates provide specialized asset management and retail brokerage services. Given the complexity of most sourcing arrangements, there was threat of big projects that required involvement of numerous vendors, was likely to lead to mismanagement of vendor details, their expertise, pricings and more. Our client thought it was in the best interests of both company and vendors to have customized and defined vendor management processes and integrate them into their existing SalesForce CRM and Contract Lifecycle Management (CLM) systems.

We devised a transformational roadmap that removed key pain points for the organization and took advantage of the capabilities included within Salesforce. A customizable dashboard interface was developed to give a Kanban view (or at-a-glance information) of their vendor status and which phase they were in. They could now scrutinize all vendors and bids and award tasks to all chosen vendors within one CRM environment and also keep track of their work progress. They could now have vendors, bids and project components at one place and easily put themselves on top of everything. We designed the most complex supplier sourcing structures that efficiently collaborate on determining the suppliers needed. The procurement employees will benefit from this collaboration as they now have a consistent and integrated 360-degree view of their suppliers. The solution delivered an enhanced uptake of Salesforce, resulting in improved data quality and improved business insights. The newly designed system now enables procurement teams in the organization to lower supplier spend, trim downtime to source, more successfully align demand with supply needs, improve change management and acquire control of the entire sourcing process.

The tangible benefits that the organization noticed were

  • Prioritized interactions with vendors and identification of will deliver ROI
  • Analytic data “customer of choice” preference with the supply base
  • Improved vendor performance across all dimensions (cost, quality, delivery, service levels, etc.)
  • Increased visibility and transparency of relationship transactions and performance among stakeholders
  • Increased trust and commitment between the organization and the supply foundation

Every organization depends on vendors to deliver supplies and to execute routine maintenance or specialty services. While it is a simple task to call someone to deliver merchandise or services, the management of it may become overwhelming.  In the insurance industry, all vendors are potential customers hence managing vendor relationships is key. Companies that focus on vendor management activities achieve greater cost reduction results and bring additional value to the organization.