Home Tech Supplier management process

Supplier management process

Supplier management process

Supply a management process ensures that suppliers and services they provide are managed to support IT service targets and business expectations the purpose is to obtain value for money from suppliers and to provide seamless quality of IT service to the business by ensuring all contractual agreements meet the business needs and that all suppliers meet their contractual requirement the objective is to obtain value for money manage.

Supplier relationships supplier performance negotiate and agree contracts with the supplier and maintain supplier policy all supplier-related information and data are maintained within supplier and contract management information system or SCM is to achieve consistency and effectiveness of supplier policy information s cm is should be implemented it should ideally be an integral part of comprehensive CMS The process is only started once the need arises to outsource a given task pre-rendered organizations perform the following activities to accomplish vendor management system researching vendors who can perform the required tasks negotiating and enter into a contract praise quotation performance evaluation preparation.

Maintenance of the vendor-related documents processing of the payments the organization’s research can perform the tasks and deliver it with quality all the chosen winners are then evaluated based on the following factors capability pricing quality.

Pass history or goodwill initially quotations are obtained from each of the vendors their references are checked and then the company researches thoroughly through online resources once this is done their financial stability certifications and insurance details are evaluated once a list of winners are chosen the responsibility of the window manager lies in managing a list of vendors allocating tasks or contracts when necessary.

Keep it check on their performance ensure that the grade upon contract rules are followed big organizations is really how a pool of depending on the past performance a specific vendor might be best suited for a specific task while secondary preference is given to other vendors.

When the preferred vendor is not able to deliver then the other vendors will be allocated with the assignment when our management usually requires huge documentation work the databases need to be integrated with various accounts payable systems in this process it easily requires obtaining vendor information like contact information incidents are tax-related documents etc. when the vendors have access to confidential information.

It is essential to get the non-disclosure agreement or similar agreement signed in from them and documented all such documents thus procured should be updated each year that covers the vendor management.

With medius supplier information management or medius SIM, you can build simple and more complex supplier registration forms using intuitive form building functionality to gather any type of information about your suppliers.

Users can build srf forms to accommodate nested linked free format numerical and dynamic question types to suit your onboarding needs using medius SIM you can also create multiple SRFs and ask tailored questions about currency categories languages and more once your suppliers have completed the SRF all approved answers will be updated across the supplier record instantly you can easily configure triggers and reminders to prompt suppliers with key information such as accreditations certifications and policy documents nearing expiration putting the onus on.

Your suppliers to ensure they provide updated information as a condition of trading with you our online supplier portal takes away the hassle of chasing your suppliers for information relating to them every time your supplier logs in they can see at a glance upcoming events ensuring they never miss a deadline.

With supplier data stored electronically you’re never far away from seeing every activity relating to your suppliers simply search for the supply you’re interested in learning more about select the supplier and at the click of a button you’ll see a full audit trail of activity and data including upcoming deadlines meetings and lots more of that particular supplier with medius SIM.

You can track all types of communication between your business and your suppliers a centralized inbox means that any member of your team has visibility across all messages.

You can also communicate with your suppliers using the various reply and communication methods the reply all option helps you save time should you need to deactivate a supplier user simply search for the supplier select the supplier and choose the supplier’s user profile you’d like to deactivate.

At the click of a few buttons you can deactivate the supplier’s user profile so they can no longer participate in your activities this not only helps drive compliance across your supply chain but also ensures you’re only working with business approved suppliers at all times.

Let us take an example of a pizza store in order to meet the demand and manage the supply chain the store manager will have contracts with multiple suppliers providing ingredients each supplier supplies ingredients that are required to make a pizza the store contract manager ensures that the supplier meets the needs of the business and supply time aligns the business needs are translated into SLR service level requirements once agreed upon this goes into a formal contract as a metric around timelines quantity and quality an example comparison of supplier metrics in pizza store and IT organization is displayed.

All supplier metrics align with the need of the business IT should support business supplier strategy sometimes call the sourcing strategy defines the service providers plan for how it will leverage the contribution of suppliers to achieve service strategy contract is one of the key pieces in managing suppliers nature and extent of agreement with a service provider depends on relationship type and assessment of the risks involved the basic content of a contract are basic terms and conditions service description and scope service standards workload ranges management information responsibilities and dependencies service debit and credit regime.

Performance criteria contracts may also include a number of other schedules like security requirements business continuity technical standards migration plans and disclosure agreements let us look at some of the key activities definition of a new supplier and contract requirement includes business case statement of requirement and conformance to strategy evaluation of new suppliers that includes method of procurement establishing evaluation criteria and alternate options negotiate contracts targets closure renewal and so on supplier evaluation and categorization includes assessing the supplier ensure change is processed through service transition categorize supplier update and manage SCM is establishment of new suppliers and contracts include setting up supplier contract transition the service establishing contacts and relationship contract and performance management includes manage and control operation monitor and report review and improve service quality manage supplier relationship review annually contract renewal or termination includes review benefits and ongoing requirement renew or terminate transfer and transition to new supplier or internal resources unlike traditional hierarchical methods.

Supplier partnership enables supply to work with the customer providing strategic solutions and help deliver better services to successfully select the most appropriate type of supplier relationship there needs to be a clear understanding of the business objectives that are to be achieved the following are a list of sample critical success.

Factors for supplier management it is up to the organization to select the appropriate CSF based on the business process hope we have provided you with a brief understanding of supplier management.

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More