Retail & Wholesale

Contract Management Office

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Challenge

Musgrave’s historic monolithic IT Supplier contractual arrangements had resulted in a lack of visibility and control. Musgrave understood that under the revised contracting arrangements – operating a multi supplier environment – greater formality and control were needed if full value were to be leveraged.

Peru were engaged to establish the Contract Management Office which provided the tools and disciplines to form a proactive model of supplier management, giving transparency around supplier performance against newly negotiated Service Levels Agreement’s and a Governance Framework to manage suppliers effectively.

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Solution

Peru used a four stage approach, described below:

Supplier Confirmation & Discovery – Confirmed which suppliers would be included based on the outcome of the selection process. The Discovery phase confirmed other suppliers

Supplier Tiering – Developed an initial view of activities required to be undertaken to manage the top tier suppliers

Implementation – Developed and implemented a prioritised plan to introduce IT Contract Management into Musgrave

Operationalisation - Implemented the operating model defined in the implementation stage

Outcome

Completed a substantive handover to staff to enable Musgrave to become self sufficient

  • Developed and implemented supplier governance and risk tracking
  • Developed Obligation tracking mechanisms, including initial audits where appropriate
  • Provided clear visibility of key obligations Musgrave and the supplier are responsible for, as well as key dates via Management Dashboards
  • Development of supplier service and financial performance tracking mechanisms
  • Tooling implemented for central repository of all relevant supplier artefacts and data
  • Completed a substantive handover to staff identified to run the CMO, including knowledge transfers to enable Musgrave to become self sufficient
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Value

Musgrave is now self sufficient in the Contract Management Office area

Reduction of Commercial risk as contract renewals can be adequately prepared for

Value realisation as suppliers can be held to account over obligations made in contracts

Operational risk reduced as suppliers can be routinely monitored

Increased service performance

Testimonial

"Due to the increasing complexity of Musgrave’s IT Supplier model, greater discipline and a proactive joined up approach was required to deliver full value. Peru were engaged to establish a Contract Management Office. Peru provided the tools and disciplines to develop a proactive model for Supplier Management, giving transparency around supplier performance. Leveraging their skills and depth of knowledge, the Peru team created a structure that will support Musgrave going forward and undertook substantive structured knowledge transfer to the internal Musgrave team to ensure self-sufficiency in running the CMO. Overall, working with the Peru team was a very positive and value adding experience."

Paul Baguley, Head of PMO, Musgrave

Michael Chahin

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