Executive Summary

A leading automotive company in the EMEA region faced significant challenges with its long-standing vendor relationship for multilingual customer acquisition, support, and fulfilment services. The existing contractual framework and lack of effective vendor management led to poor operational performance and a strained relationship. Envisago was engaged to identify the underlying issues and implement strategic solutions. By conducting a thorough vendor site audit, restructuring the contract, and providing a clear roadmap for improvement, Envisago helped transform the vendor management approach, increase vendor engagement, and improve overall performance results.

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Background

Client Profile:

• Type: Leading EMEA automotive company.

• Vision and Mission: Embarking on a significant change driven by a premium customer-centric strategy.

• Objectives:

  • Drive higher levels of customer satisfaction and loyalty.

  • Increase revenue and profitability.

  • Reduce operational costs.

Vendor Relationship:

• Services Outsourced:

  • Multilingual customer acquisition.

  • Customer support and fulfilment services.

• Duration: Outsourced to a single vendor for many years.

• Issues Identified:

  • Dissatisfaction with service level and operational performance.

  • Dependence on the vendor with minimal client input.

  • Major fulfilment issues and questionable value for money.

  • Reactive account management leading to a poor working relationship and lack of trust.

 

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Challenges

Grounds for Dissatisfaction

• Ineffective Contractual Framework:

  • The existing contract and relationship framework did not support a high-performance operation.

• Lack of Key Metrics:

  • Limited objective measurement and management due to the absence of critical performance metrics.

• Resource Constraints:

  • The client's stretched resources led to a lapse in vendor management focus.

• Imminent Contract Renewal:

  • With the renewal date approaching, the client faced risks in every potential course of action.

• Strategic Uncertainty:

  • Needed to decide whether to move the operation or address issues amidst ongoing enterprise-wide strategic changes.

A Shared Challenge

• Mutual Contribution to Issues:

  • Both the client and vendor recognised their roles in the deteriorated relationship.

• Risk and Timing Pressures:

  • Required a cautious approach to mitigate risks associated with changes.

• Feasibility of Improvement:

  • Uncertainty about making the vendor operation fit for the client's evolving strategic objectives.

• Need for Short-Term Solutions:

  • Identifying feasible improvements in the short to medium term while developing alternative long-term plans.

 

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Solution Implemented by Envisago

Defining the Problem

1. Vendor Site Audit and Fulfilment Operation Review

• Process and Performance Gap Analysis:

  • Identified gaps impacting operational delivery.

  • Recognised opportunities to improve quality performance and increase efficiencies.

• Contract and Statement of Work Review:

  • Discovered critical shortcomings and limitations hindering higher levels of performance.

2. Restructuring the Contract

• Contract Enhancement:

  • Restructured the contract to address key areas with the greatest performance impact.

• Enhanced Statement of Work:

  • Revised to include high-performance elements and clear requirements.

• Focus Areas:

  • Emphasised both quantitative elements (metrics, KPIs) and qualitative aspects (relationship management).

3. Providing a Roadmap for Improvement

• Clear Action Plan:

  • Delivered a roadmap outlining how to close the identified gaps.

• Collaboration Between Client and Vendor:

  • Facilitated mutual understanding and commitment to the improvement plan.

• Critical Success Factors:

  • Highlighted the importance of relationship and management aspects for a successful vendor partnership.

 

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Results and Impact

Redesigning the Future

• Improved Operational Performance:

  • Enhanced service delivery and fulfilment processes.

• Increased Vendor Engagement:

  • Higher satisfaction levels reported with the vendor relationship.

• Effective Account Management:

  • More proactive and collaborative approach between client and vendor.

• Morale Boost:

  • Improved morale for both client and vendor teams.

• Collaborative Working Environment:

  • Development of a more cooperative and aligned partnership.

• Alignment with Strategic Goals:

  • Vendor operations now closely aligned with the client's premium customer-centric objectives.

• Anticipated Continuous Improvement:

  • With the revised contract and better management practices, ongoing operational and performance challenges are more easily addressed.

 

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Client Testimonial

"What I enjoyed most about working with Envisago was their professionalism, their integrity in dealing with sensitive areas, and their handling of the people affected by the project."

— Procurement Director, Leading EMEA Automotive Company

 

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Conclusion

By partnering with Envisago, the automotive client successfully transformed its vendor management approach, leading to improved operational performance and a strengthened vendor relationship. Envisago's comprehensive assessment, strategic contract restructuring, and clear roadmap for improvement enabled the client to address critical issues effectively. The collaboration resulted in a more aligned and high-performing vendor partnership, supporting the client's strategic objectives of enhancing customer satisfaction, loyalty, and profitability while reducing costs.

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