Our client is a large ‘challenger bank’ with a fast-growing customer base and complexities driven by multiple mergers and acquisitions.
Challenge
.The client needed to update their approach to supplier management, which focused on a relatively small number of suppliers. The current approach was broadly risk-centric; internal compliance was inconsistent, and there was little wider business visibility.
Approach
Proxima conducted a rapid diagnostic to assess the client’s current supplier management framework (SMF) and their existing plans for supplier relationship management. Then, designed a new SMF, including a segmentation model, controls/activities framework, question sets, tools, templates, governance framework, role descriptions, RASCI, and competency framework. Finally, building policies and operating models and delivering training to embed the program.
Proxima provided additional support for the segmentation of the supplier base, communications, and launch activity. Throughout this process, we engaged a wide range of stakeholders across commercial, operational, and risk areas through multiple forums and mechanisms, including:
- Feedback and challenge workshops with risk owners and business functions to establish and challenge supplier segmentation activity
- “Voice of the supplier” relationship surveys and “voice of the customer” surveys
- Supplier communications and conferences to engage the top 100 suppliers and address any potential adoption issues
Results
The new SMF was designed around best practices in Financial Services. By designing the SMF around risk, performance, and value, we created a more balanced and thoughtful approach to different types of suppliers. Moving from a pure risk-focused model allowed the bank to identify and manage suppliers according to critical delivery commitments and unlock the potential to collaborate and innovate, driving greater and broader resilience.
A clearly differentiated approach by supplier tier has enabled increased coverage of the supplier base and driven a consistent method for managing the supplier base across the business. Automation has reduced the administrative burden and non-value-adding activity and has provided enterprise visibility and actionable insight to further improve the management of risk and supplier performance.
