Gartner Research

IT Procurement Best Practice: Leverage Spend Analysis and Supply Chain Management to Develop a Global Vendor Relationship

Published: 18 June 2008

ID: G00157080

Analyst(s): Stewart Buchanan

Summary

International organizations expect global vendor relationships, but few customers achieve a vendor relationship on a truly global scale. Spend management information helps to break down the problem as the first step to solving it.

Table Of Contents
  • Overview
  • What Is Spend Management and Why Is It Essential?
    • Identify Spending by Supplier, Location, Product and Manufacturer
    • Include Demand and Forecast Spending
  • How Is Spend Management Implemented?
    • Find Economies of Scale
    • Leverage Economies of Scale
  • When Should I Use a Reseller, and Which Reseller?
    • Geographical Coverage
    • Channel Depth and Complexity
    • Channel Controls and Compensation
  • Can I Deal Directly With a Worldwide Technology Provider?
    • Define What You Want From a Global Relationship and What You Can Offer the Vendor in Return
    • Consolidate Spending at a National Level First, Then Apply What You Learn Internationally
    • Find the Right People With Whom to Negotiate
    • Build on Mutual Self-Interest Until You Can Leverage Market Competition Across Market Boundaries and Responsibilities
    • Overcome Vendor Push-Back
    • Ensure That Incentives Are Distributed Appropriately Across Organizations and Geographies
    • Reward Vendors and Channel Partners for Sharing Responsibility for Solving Your Challenges
  • Conduct a Commercial Reality Check
    • Concentrate on Optimizations That Result in Mutual Benefits
    • Production Costs
    • Supply Chain Risk Management
    • Design and Development Costs
    • Transaction Costs
    • Logistics Costs
    • Support and Maintenance
    • Brand Equity
  • Conduct Regular Spending Reviews
    • Use Tenders to Qualify Spending Options

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