For utilities and REITs, a sprawling vendor network can feel like a tangled mess of relationships and contracts. Juggling multiple service providers for energy sources, maintenance, construction, and property management creates invoice headaches, communication breakdowns, and inefficient processes.
Managing this complex web can drain resources, hinder profitability, and leave you feeling like you're constantly putting out fires.
When economies of scale backfire, there is a decline in procurement efficiency as companies suffer from hidden administrative costs that can exceed 10% of their total procurement spend. This translates to millions lost in unnecessary expenses and countless hours wasted on tedious vendor management tasks.
But there's a better way. By building a leaner vendor portfolio, you can streamline your operations, boost efficiency, and unlock significant cost savings. This doesn't mean cutting ties with everyone, but rather strategically consolidating, optimising, and building stronger relationships with key partners.
Imagine a streamlined network where communication flows effortlessly, invoices are processed automatically, and you have the data to make informed decisions about every vendor partnership.
Here's how to achieve this in 3 simple steps:
Before you can build a leaner portfolio, you need a clear picture of your current landscape. It's time for a vendor audit.
Felix can be your partner in this crucial step. Our powerful vendor management solution lets you have a helicopter view of your supplier pool, compare vendor performance, and identify areas for improvement. With all the data you need in one place that is up-to-date, you'll be able to make informed decisions about your vendor network based on concrete evidence, not gut feeling.
Once you understand your current vendor landscape, it's time to make some strategic moves. Engage in collaborative relationships with vendors that align with your long-term objectives.
Felix can help you manage these partnerships effectively. Our vendor performance evaluation tools let you customise the criteria important to you, while the centralised database means lessons learned are never lost.
This reduces the chance of re-engaging with low performing vendors or engaging vendors not aligned with your strategic objectives.
Additionally, our secure communication platform facilitates streamlined collaboration, ensuring everyone is on the same page and working towards shared goals.
This is where you execute the strategies from step 2 and roll out new initiatives enterprise-wide. If you’ve done step 1 and 2 using manual tools or not fit-for-purpose software, there’s a risk of inefficiency and ineffectiveness, which means step 3 may not even be possible.
Depending on the sophistication of the tools used, you may end up having to repeat all of these in six months’ time as the “complexity debt” catches up.
Complexity debt occurred in each step is carried over to the next, causing difficulty getting to the last step
In today's digital age, manual processes and outdated systems are simply holding you back. Embrace automation and technology to unlock the full potential of your leaner portfolio.
And it’s not just any technology. Built-for-purpose vendor management and procurement software would be your ultimate weapon.
Would you rather:
Or would you rather:
Use a purpose-built vendor management and procurement platform like Felix that:
Building a leaner vendor portfolio is not a one-time action, but rather a continuous journey of optimisation and improvement. By following these steps and leveraging technology, utilities and REITs can unlock significant benefits:
It’s a good idea to do this three-step exercise in January when everything and everyone is slowly easing back into work.
By following these 3 steps and leveraging technology, you can escape the labyrinth of vendor complexity and create a leaner, more efficient, and sustainable network that powers your success.
Felix offers a suite of features designed to automate tasks, streamline communication, and provide real-time data insights. From supplier onboarding to running sourcing events and contract management, Felix empowers you to make informed decisions and achieve your lean portfolio goals.
Get in touch to find out more.
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