Supplier management is the process that ensures that as a minimum the expected value is received for the investment that an organisation makes with its third-party relationships.
What is a framework?
A supplier management framework assists to manage a supplier’s performance and relationship to help ensure best practice contract management and that all parties stay true to their obligations. This framework provides you with a set of control measures, checkpoints, and a consistent manner in which to govern and manage a contract.
What are the elements of a supplier management framework?
Four key focus areas;-
- Supplier Data: Ensuring all key contractual milestones, obligations, critical dates and contacts are fully understood, calendarised and appropriately documented.
- Supplier Classification:Assessment of the impact and operational reliance of the customers business to services from their suppliers which will classify the supply landscape into a tiered structure against which the governance framework and control measures will be defined. This classification process can extend to a complete Supply Chain Risk Assessment.
- Governance Framework:A framework is constructed against the tiered classification structure defining the governance protocols, control measures and actions to be applied against each supplier in each tier.
- Supplier Management Library: A central repository where copies of all contracts, change note, performance reports, obligation trackers, contract calendars, review meeting agenda with supporting pack and minutes, risk registers, contact details and supplier annual results are stored not only for reference, but to serve as an audit trail to track attainment to the defined governance framework.
What is the purpose of supplier management?
The purpose of Supplier Management is to plan, manage and review suppliers of goods and services and to monitor the agreed service levels.
Who is responsible for supplier management?
The Supplier Manager is responsible for ensuring that value for money is obtained from all suppliers. They make sure that contracts with suppliers support the needs of the business, and that all suppliers meet their contractual commitments.
What is Supplier management consultancy?
Supplier management consulting is the provision of services that help an organisation define their approach to managing third party relationships and contracts to ensure they are receiving the services they entered into the contract for, and that these services are being delivered to the correct standards, quality, and timeframes.
What is successful supplier management?
Successful supplier management, and the associated contract management disciplines, will see the supplier relationship mature and become more of partner with shared risk across both parties and innovation driving improvement to services and operating practices.
What is supplier relationship management (SRM)?
The supplier management function is often seen as the conduit, or even mediator, between suppliers and internal resources with regards to extracting the best value from the contracts in place for both parties, ensuring the customer’s requirements are reasonable and inline with the contract whilst also ensuring the supplier discharges the obligations they signed up to as part of the agreement.
What tools are used in Supplier management?
Assess the benefits of software tools to support the vendor management processes. For Example, Enterprise Vendor Management | Brooklyn Vendor Assurance (brooklynva.com)