Managing supplier services through governance

Managing supplier services through governance

As business becomes increasingly complex, universal and focused on outsourcing, the diversity of organisations in a company's supplier network can be vast. However, an undisciplined approach to supplier governance can lead to project delivery issues, value leakage and exposure to new areas of risk.

Andrew Peel

Partner, Sourcing & Procurement Advisory

KPMG Australia

A king on a chess board

Adding to the challenge is the shift toward multiple contractors working on a single project, who could all have different levels of responsibility, legal compliance requirements, and be located all over the world.

Costs can easily go unchecked, and cyber risk can increase as more and more organisations are linked in the chain. It all points to the need for effective supplier management.

In this brief paper, Managing supplier services through governance, Andrew Peel, Director in Supplier Management & Governance Services, delves into these issues, demonstrating why sound supplier governance management is essential.

Andrew explores:

  • why supplier governance has become more complex
  • how to manage multiple suppliers
  • the issue of value leakage, the damage it causes and how to avoid it
  • the five essential steps to good supplier governance.

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