Lacking visibility into supplier spend and performance, and under pressure from increasing regulation, a financial service company sought ISG's help to get its supplier costs under control.
Opportunity
Imagine a financial services company with over $140 billion in revenue struggling to keep track of supplier costs, performance and compliance. This was the reality for a large European company: a leading global insurance provider. Its vendor management system was overwhelmed by a growing number of suppliers, complex regulations and inaccurate forecasts. The company knew it needed a major change.
The company faced a pressing need to control its costs. New regulations in the financial IT landscape added another layer of complexity. Its current vendor management system lacked transparency, making it difficult to see where money was being spent and how well suppliers were performing. The company admitted it had put off addressing this issue for years, but it was time for a complete overhaul.
Imagining IT Differently
The insurance company hired ISG, a leading technology research and advisory firm, for our supplier and contract management solutions, and especially our ISG GovernX® platform. But the ISG team didn't just jump in and start implementing a technology solution. We conducted a thorough supplier governance maturity assessment first. This assessment helped the company build a strong business case for improving its supplier management capabilities and identify the right technology platform.
The ISG solution focused on delivering the most cost-effective way to address the company's critical needs. ISG implemented new processes and our GovernX platform tool to provide clear visibility into supplier performance across the entire organization. Via this new tool, dynamic dashboards and reports highlighted areas where improvement was needed, empowering the company to make informed decisions.
Future Made Possible
While cost control was a major concern, the improved visibility provided by ISG GovernX offered additional benefits. The company gained a better understanding of supplier compliance, ensuring it was working with qualified vendors. This not only reduced risk, but also streamlined operations.
By implementing supplier management solutions, this large financial services company gained the control they needed over its supplier network. The company can now focus on core business activities with confidence that its suppliers are delivering high-quality services at a competitive cost.
Find out more how your organization can benefit from ISG’s supplier and contract management solutions by clicking here.
