Functions and Processes In Service Design P7

Supplier Management

Introduction

• The goal of the supplier management process is to manage suppliers and the services they supply, to provide seamless quality of IT service to the business, ensuring value for money.

• Objectives are:

• Obtain value for money from suppliers and contracts.

• Ensure that underpinning contracts and agreements with suppliers are aligned to business needs.

• Manage relationships with suppliers and their performance.

• Objectives are:

• Negotiate and agree contracts with suppliers.

• Maintain a supplier policy and a supporting supplier and contract database (SCD).

• Scope

• The supplier management process includes the management of all suppliers and contracts needed to support the provision of IT services to the business.

• Value for the business

• Most important goals of supplier management is to get value for money from supplier and contracts and to ensure that all targets in underpinning contracts and agreements are aligned to business needs and agreed targets within the SLAs.

• Ensures the delivery of end-to-end seamless, quality IT services that are aligned to the business expectation.

• Value for the business

• The supplier management process should align with all corporate requirements and the requirements of all other IT and service management processes particularly information security management and ITSCM.

• Basic concepts

• All activities in this process should be driven by a supplier strategy and the policy from Service Strategy.

• Create a Supplier and Contract Database (SCD) to achieve consistency and effectiveness in implementing policy.

• This database would be an integrated element of CMS or SKMS. It contain all details regarding suppliers and contracts, together with details about the type of service or product, and any information and relationship to other configuration items.

• Basic concepts

• The data stored here will provide important information for activities and procedures such as:

• Categorizing of suppliers.

• Maintenance of supplier and contract database.

• Evaluation and set-up of new suppliers and contracts.

• Establishing new suppliers.

• Supplier and contract management and performance.

• Renewed and terminated contracts.

Activities, methods and techniques

• These phases are:

• Identifybusiness need and preparation of business case:

• Produce a Statement of Requirement (SOR) and/or a Invitation to Tender (ITT).

• Ensure conformity to strategy and policy.

• Prepare initial business case.

• Evaluateand procure new contracts and suppliers:

• Identify method of purchase or procurement.

• Establish evaluation criteria.

• Select.

• Negotiate.

• These phases are:

• Evaluateand procure new contracts and suppliers:

• Agree and award contract.

• Establish new suppliers and contracts.

• Set up suppliers and contracts.

• Transition of service.

• Establish contacts and relationships.

• Categorize suppliers and contracts:

• Assessment or reassessment of supplier and contract

• Ensure changes progressed through service transition.

• Categorization of supplier.

• These phases are:

• Categorize suppliers and contracts:

• Update SCD.

• Maintain SCD.

• Manage the supplier and contract performance:

• Management and control of the operation and delivery of service.

• Monitor and report.

• Review and improve.

• Management of supplier and relationship.

• Review at least annually service scope against business need, targets and agreements.

• Plan for possible closure.

• These phases are:

• End of term:

• Review.

• Negotiate and renew or terminate.

• Interfaces

• The supplier management process can be triggeredby:

• New or changed corporate governance guidelines.

• New or changes business and IT strategies.

• New or changed business requirements or changed services.

Implementation

• Supplier management has the following challenges:

• Constantly changing business and IT needs.

• Existing imperfect contracts.

• Insufficient experience in the organization.

• Tried to long-term contracts.

• In order to meet these challenges, attention must be paid to the following elements:

• Clearly written, well-defined service management processes on both sides.

• In order to meet these challenges, attention must be paid to the following elements:

• Mutually advantageous relations.

• Clear roles.

• Good communication.

• The successof supplier management will be determined in part by:

• Protection against poor supplier performance.

• Services (and goals) adjusted to the requirements of the business.

• Clarity on suppliers and contracts.

• Supplier management has the following risks:

• Lack of commitment from the business and senior management.

• Lack of information on future business goals and policy.

• Lack of resources or budget.

• Impossible contract agreements to be met.

Source by : OGC