Supplier Benchmarking & Deal Evaluation
Benchmarking is one of those services that if you get it wrong and rely on it, you could be loosing value every day for the duration of the contract term. On the flip side, if you combine benchmarking and deal making, you will more often that not build valuable and sustainable partnerships with your supply chain.
My question when I have been asked to buy Benchmarking services in the past is quite simply “Have you got any commercial relationships with any of the suppliers I want to evaluate?” – and nine times out of ten they do. Not only do they have commercial relationships, but they are a revenue stream to the Benchmarking provider and therefore they are not neutral.
I am a big fan of the idea of a Chinese wall between departments, however I believe that compensation drives behavior more, and that, in one sentence, is one of our core differentiators.
We also apply contextual knowledge to deals. What I mean by that is that although commercial position is in the critical path and usually what we are asked for, we actually fully understand the products and or services that we Benchmark. This enables our clients to look beyond the traditional Benchmark to ensure that the technology will do what is says it will do, whether it was built for the purpose they want it for, or if it has been altered to fit. There are many other ways in which we evaluate price models, price comparisons and the technological/functionality fit as well.
Our experience extends to hundreds of deals a year across multiple industries and geographies. When we benchmark a product or service, we don’t just compare and evaluate, we advise on value retrieval and retention, ensuring you don’t just have assistance in choosing, but also in maintaining the choices you made.