Supplier Commercial Optimisation (SCO)

CoCo take unmaintained, unstructured commercial information and quickly organise and understand the data to enable informed strategies to be created to deliver cost reduction and supplier commercial management, here we:

• identify existing supplier contracts, hunt down missing or out of date 

    documents;

• collate and store related documents to either deliver or improve a 

    customer's commercial contract repository;

• review contracts, invoices and related documentation for opportunities;

• review spend data bringing together Accounts Payable data /  ledgers; and,

• understanding products & solutions with technical and architecture teams.

Using output from the previous step CoCo systematically:

• identify variable levers that can be invoked mid-contract;

• establish under-utilisation opportunities;

• highlight over-billing scenarios;

• identify services not required;

• ensure SLAs are aligned to business needs requirements;

• challenge the risk appetite decisions that could be made to reduce costs;

• reconstruct licensing agreements to ensure they remain appropriate, and,

• establish opportunities for pricing renegotiation, etc...

Key to the service is establishing  holistic view of the supplier's position in the organisation including:

• creating a holistic view of supplier spend;

• providing a complete contract view including global and fragmented local 

    agreements;

• incorporating available accounts payable spend data;

• establishing the correct opex / capex financial treatment;

• a review of significant financial invoices for the  supplier; and

•  establishing an understanding of the supplier's competitive landscape 

     including existing vendor alternatives, existing products within the 

     organisation and external competition.

The ongoing delivery of cost savings and commercial risk mitigation to the customer, the key point here is that this happens throughout all phases, wherever and as soon as they are identified CoCo will proactively delivery benefits where they find them, CoCo:

• manage the delivery of multiple cost reduction activities in parallel;

• provide a playbook of cost optimisation initiatives;

• deliver a structured programme with detailed auditable MI / reporting of 

    initiatives;

• deliver auditable and evidenced savings from and agreed baseline position

• implement of cost policies and processes; and,

• drive a culture understanding cost and the impact on an organisations 

    profitability and the consequences of poor cost management.