1. Who We Are
What We Are
What We Do
How We Do It
Why We Do It

2. Who We Are
Danforth International LLC., is an independent global consulting entity, created by
aligning over 20 years of Vendor Management/Sourcing, Relationship/Project
Management, Operations, Strategy, IT Management skills and experience.
We seek to help clients realize the intended value of outsourcing arrangements
through the development of an effective vendor management program. Our program
will control cost, drive service excellence and mitigate risk to gain increased value
from each vendor throughout the contract life cycle.
Ken Danforth, President/Chief Consultant has been firmly entrenched with
domestic and international fortune 500 companies throughout career (IBM,
CIGNA, AT&T, KPMG, HBO & Co.,) Ken received his BS degree in Business and
Financial Management from Clemson University.

3. What We Are
We are a service operation that assist organizations in effectively managing vendor
performance, relationship, cost and contracts.
• Client Focused
We organize our processes and network to specifically meet the business outcomes and
performance needs of each client.
• Experienced
We bring expertise, knowledge, cost savings and a continual improvement mindset to keep
our services aligned with our client’s changing business conditions.
• Practical
We focus on performance measurements and strong working relationships to keep your
outsourced relationships robust.

4. What We Do
• Strategize and Plan
Define the structure, roles/responsibilities and resources to support long-term vendor
management. This ensures that sourcing decisions and vendor management practices
align with business needs and integrate with other strategic IT and business plans.
• Assess Current State
Review vendor acquisition and disposition processes, outsourcing contracts, SLAs,
performance metrics, scorecards, and assessments to identify improvements for a more
effective, efficient and consistent vendor management.
• Assess Competencies
Review and develop optimal strategy, operations and processes to support the vendor life
cycle (from acquisition to disposition), contract management, relationship management,
performance management and risk management.
• Operate and Evolve
Use assessment and industry data to track vendor management operations and success.
Adjust the discipline approach based on operational results, enterprise risk related to using
vendors, changing business needs and evolving product/service vendors.

5. How We Do It
We bring a number of important advantages to client engagements:
• Performance Management
• Relationship Management
• Cost Management
• Contract Management
We deliver results, not reports. To that end, we work collaboratively with
clients and vendors to create and implement practical solutions while
delivering real value within our business relationships

6. Planning
Governance
Business Unit Liaisons
Communications & Forums
Escalation Management
Issue Tracking
Contract Compliance
Amendments / Renegotiations
Benchmarking
Document Management
Policies & Procedures
Invoice Verification
Charge Back
Receipt of Service
Service Consumption Analysis
Cost Effective Measures
Budget & Forecasting
Relationship Management
Performance Management Cost Management
Contract
Management
Right Work, Done Right Validate and Manage Costs
Satisfaction, Direction Setting Ensure Compliance
Vendor
Management
Strategy
Service Delivery Requirements
Service Level Reviews
Problem Management
Tools
Conflict Resolution
Work Prioritization
Components of Value

7. Why We Do It
Whether the challenge is to:
• Reduce cost
• Measure performance
• Negotiate contracts effectively
• Assist in vendor selection
• Improve their risk profile
Our clients have confidence that we will make a real impact on their bottom line.

8. Why You Need Us
Problem
• Lack of experienced resources
• Cost of resources
• Contracts left open to interpretations
• Lack of oversight, resulting in rise in cost of solutions
Solution
• Create a cost management approach (evaluate, control, efficiency, maintenance)
• One-on-One (Liaison)
• Custom framework approach (implement vendor management strategy)

9. Part II
The Vendor Management
Framework
A More Detailed View

10. Steps to Identify, Validate & Operationalize
Framework Components
Transition
Support
• Defines the desired
organization
capability and
scope of vendor
management
activities
• Input from all users
• Each element will
be designed and
tailored based on
the specific
requirements
defined in the
strategic vision
• Each element is
documented to
facilitate the
validation, roll out
and ongoing
execution of the
framework
Design and
Documentation
• Key users will be
provided the
opportunity to validate
and vet the framework
to confirm that their
specific requirements
have been addressed
• Validation will support
execution of roll-out
plans, while creating
improved awareness
Validation and
Implementation
Develop the
Strategic
Vision
Reporting and
Continuous
Improvement
• Implementation activities
may include change
management and
communications,
process, reengineering,
progress reporting as
well as system
requirement definition
and selection

11. Vendor Management
Strategy
Vendor
Management
Policy
Governance
Process
and
Controls
Roles
and
Responsibilities
Performance
Reporting
Enabling
Technology
Elements of Vendor Management Framework

12. Vendor Management Strategy
Establishes the context, strategy, objectives and
guiding principles upon which
the framework is based
Vendor Management
Strategy

13. Vendor Management Policy
Defines the expectations and policy requirements of
the framework
Vendor
Management
Policy
Governance
Articulates organizational structures and reporting
lines for the day-to-day execution and
management of vendor management activities
Governance
Process
and
Controls
Process and Controls
Describes the activities through which policies will
be applied, defining process flows, accountabilities
and activities to ensure that vendor management
activities are conducted in a consistent manner.
Identifies critical vendor management risk and
controls for managing these risks

14. Roles and Responsibilities
Communicates the specific roles and responsibilities
of all stakeholders involved in the vendor
management lifecycle
Roles
and
Responsibilities
Performance
Reporting
Performance Reporting
Defines the reporting standards, tools and templates
to be used to monitor a vendor’s performance and
ongoing viability, identifying emerging vendor specific
risks and enforce vendor management activities
Enabling Technology
Outlines the systems and infrastructures required to
enable vendor management processes, including
reporting, that are compliant with the framework and
policies
Enabling
Technology

15. Measurable Strategic Value
Formalizing practices to measure and mange vendor performance through
targeted policies, controls, processes accountabilities and governance structures.
Define the interaction points between the vendor and the organization throughout
the vendor management lifecycle.
Proactively manage and mitigate vendor specific risks.
Providing insight on the spend and performance of vendors.
Reduce contract non-compliance and associated cost and effort.
Avoid overpayment and/or under delivery.
Better positioning the organization in on-going vendor negotiations to
increase value.
Engage key vendors for input and support into long-term strategic planning.

16. Building a strategic Vendor Management Program
“Collaboration is no longer an option…
it is now a fundamental strategy…”
“you cannot be successful with any
type of sourcing transaction without
good communications…”

17. Ken Danforth, Chief Consultant
e-mail questions to:
kdanforth@danforthintl.com
visit:
www.danforthintl.com

18. Thank You