Data.
Gap.
Solution.
Developed with the expertise our clients need, VitalTec Solutions is a Service Offering combining External Category Management Support & Post-Award Contract Management Tools.
We discovered a major challenge that our supply chains have struggled to address. The challenge is preventing savings and value erosion from our contracts after bidding or sourcing for material or services. The ability to sustain value post-award in contracts is a significant gap in our supply chain delivery that our stakeholders expect us to manage. The erosion is more prevalent in the “non-strategic” contracts that can account for 50% of the third party spend of an organization. Most supply chain organizations lack the resources, time, skills or discipline to pull all the key elements together to prevent value erosion.
Post-award contract value erosion can exceed $50 Million per Billion dollars of spend!
We have a solution. We have built VitalTec Solutions to support our clients to sustain the value they worked so hard to create through bidding or sourcing. Our solution includes a technology tool accompanied with our experienced supply chain resources. Our clients and numerous supply chain leaders have confirmed a huge need for the service we offer. Our service and tool have many benefits which we would be glad to discuss with you.
Data.
Supply Chains have become heavy users and accumulators of data. Data, Digital, Cloud, and Market Intel Reports have equipped organizations with power and real time spend and market information. Data can add tremendous value when making third party contracts for materials and services. This data is critical to establish both commercial terms and relationship management.
Gap.
The data is not effectively utilized in the post-award contract performance process and significant value erosion occurs as a result. Supply Chain organizations lack the resources, time, skill and priorities to ensure value is sustained rather than eroding. The gap is real and it is not addressed in 90% of Supply Chains, for over 50% of their third-party contracts. Supply Chain organizations are beginning to realize the issue but lack the resources, skills, time or priority to address.
Solution.
VitalTec Solutions provides the tools to fully utilize client data, the resources to convert the data to solutions and the Supply Chain expertise to prevent the significant erosion. We take client data and information and ensure the right “business conversations” and actions occur that benefit the client and their suppliers. Our tool and service were designed by Supply Chain experts that know how to convert the masses of data into value based solutions.
Root Causes Enabling Value Erosion
Poor hand-off from the sourcing or tender team
Inferior Contracts
Leakage and lack of buy-in
Slow reaction to market shifts
Suppliers don't perform as promised
