The Vendor Value Creation station is about shifting the conversation with external legal providers from “what did you do?” to “what did you deliver?” It’s the legal team’s mechanism for demanding – and measuring – tangible value from law firms, ALSPs, and other legal vendors. Advice alone isn’t enough. In today’s environment, external providers must demonstrate how they’ve contributed to cost reduction, efficiency, innovation, and strategic outcomes.

This station recognises that value is not a vague concept – it’s a measurable result. Whether it’s through secondments, knowledge transfer, technology deployment, or process optimisation, providers must show how they’ve helped the legal team do more with less. And they must do so proactively, not just when asked.

GLS, for example, routinely delivers value through cost-saving legal tools, automated workflows, and scalable ALSP support – often reducing legal team costs by up to 80%. But the key is that this value is visible, measurable, and repeatable.

Ultimately, this station is about accountability. It’s about making sure that every dollar spent externally is tied to a business outcome – and that providers understand they’re being evaluated not just on legal expertise, but on their ability to create value.

The scope of the Vendor Value Creation station includes:

◼️Value Definition: Establishing what “value” means for the legal team – cost savings, efficiency, innovation, strategic alignment.

◼️Provider Commitments: Requiring providers to articulate how they will deliver value as part of their engagement.

◼️Performance Metrics: Tracking value delivery through KPIs such as cost reduction, turnaround time, and knowledge transfer.

◼️Innovation Contributions: Encouraging providers to bring forward tech solutions, process improvements, and new delivery models.

◼️Secondments & Training: Leveraging provider resources to build internal capability and reduce reliance.

◼️Knowledge Sharing: Ensuring providers contribute templates, insights, and best practices to the legal team.

◼️Annual Value Reports: Formal documentation of value delivered, shared with internal stakeholders.

◼️Panel Selection Criteria: Including value creation capability as a core criterion for preferred provider status.

In GLS legal ops speak – the Vendor Value Creation is considered a “Foundational” resource within the process ecosystem of an in-house legal team.

The Foundational Resource is a CRE that is responsible for determining the overall performance capabilities of a “critical” legal function. If it is not optimised, the function can never be optimised. 

The best practice features of the Vendor Value Creation station are as follows:

◼️Value Framework: A documented framework that defines what value looks like and how it will be measured.

◼️Provider Value Proposals: Providers submit a value creation plan as part of their engagement.

◼️Quarterly Value Reviews: Regular check-ins to assess progress and recalibrate expectations.

◼️Innovation Scorecard: Tracking provider contributions to tech adoption, process improvement, and cost optimisation.

◼️Secondment Programmes: Structured opportunities for providers to embed resources within the legal team.

◼️Knowledge Transfer Protocols: Formalised sharing of templates, playbooks, and training materials.

◼️Annual Value Report: A comprehensive summary of value delivered, used to justify spend and inform renewals.

◼️Integration with Performance Management: Value creation is linked to provider performance reviews and panel decisions

The Vendor Value Creation station delivers the following value to the Business:

◼️Cost Reduction: Providers contribute directly to lowering legal spend through smarter delivery models.

◼️Efficiency Gains: Legal work is completed faster and with fewer resources.

◼️Innovation Uptake: Providers introduce new tools and processes that improve business outcomes.

◼️Strategic Contribution: External support aligns with business goals and drives measurable impact.

◼️Budget Justification: Value reports help defend legal spend to finance and executive leadership.

◼️Improved ROI: Every dollar spent externally is tied to a tangible business benefit.

◼️Enhanced Provider Accountability: Legal teams can hold vendors to performance and value standards.

◼️Improved Internal Credibility: Demonstrates to the business that legal is managing spend strategically.

◼️Resource Optimisation: Providers help the legal team do more with less.

◼️Capability Building: Secondments and knowledge sharing strengthen internal expertise.

◼️Better Provider Relationships: Value-focused engagement fosters collaboration and continuous improvement.

◼️Strategic Leverage: Legal teams gain influence over provider behaviour and pricing.

The Vendor Value Creation station is essential for:

◼️General Counsel

◼️Heads of Legal Operations

◼️Legal Team Leads

◼️Procurement and Vendor Management Teams

CFOs seeking legal spend accountability

A legal team operating without a Vendor Value Creation framework will face a wide range of inefficiencies including:

◼️Unjustified Legal Spend: No clear evidence of value delivered by external providers.

◼️Underperforming Vendors: Providers continue to deliver generic advice without strategic impact.

◼️Budget Vulnerability: Difficulty defending legal spend to internal stakeholders.

◼️Missed Innovation Opportunities: Providers are not incentivised to bring forward new ideas.

◼️Weak Internal Credibility: Legal team seen as a cost centre, not a value driver.

◼️Fragmented Engagements: No consistent approach to measuring or demanding value.

The Vendor Value Creation station leverages technology through:

◼️Performance Dashboards: Visual tracking of provider contributions and value metrics.

◼️E-Billing Platforms: Analysis of billing data to identify cost-saving opportunities.

◼️Collaboration Tools: Platforms for sharing knowledge, templates, and training materials.

◼️Innovation Portals: Channels for providers to submit tech solutions and process improvements.

◼️Contract Management Systems: Embedding value expectations into engagement documentation.

The GLS Knowledge Centre has a wealth of resources available for learning more about the importance of a Vendor Value Creation and how you can effectively implement one - check out a few on the right.

The GLS Legal Operations Centre contains everything you need to effectively implement your own tailored Vendor Value Creation in a cost-effective and timely manner. Check out the resources linked on the right. 

Also, feel free to contact GLS to book a consult to discuss your Vendor Value Creation needs right here.