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Value to the business. The main objectives of the Supplier Management process are to provide value for money from suppliers and contracts and to ensure that all targets in



The main objectives of the Supplier Management process are to provide value for money from suppliers and contracts and to ensure that all targets in underpinning supplier contracts and agreements are aligned to business needs and agreed targets within SLAs. This is to ensure the delivery to the business of end-to-end, seamless, quality IT services that are aligned to the business’s expectation. The Supplier Management process should align with all corporate requirements and the requirements of all other IT and SM processes, particularly ISM and ITSCM. This ensures that the business obtains value from supporting supplier services and that they are aligned with business needs.

4.7.4 Policies/principles/basic concepts

The Supplier Management process attempts to ensure that suppliers meet the terms, conditions and targets of their contracts and agreements, whilst trying to increase the value for money obtained from suppliers and the services they provide. All Supplier Management process activity should be driven by a supplier strategy and policy from Service Strategy. In order to achieve consistency and effectiveness in the implementation of the policy, a Supplier and Contracts Database (SCD) should be established, as illustrated in Figure 4.30, together with clearly defined roles and responsibilities.

Figure 4.30 Supplier Management process

Ideally the SCD should form an integrated element of a comprehensive CMS or SKMS, recording all supplier and contract details, together with details of the type of service(s) or product(s) provided by each supplier, and all other information and relationships with other associated CIs. The services provided by suppliers will also form a key part of the Service Portfolio and the Service Catalogue. The relationship between the supporting services and the IT and business services they support are key to providing quality IT services.

This information within the SCD will provide a complete set of reference information for all Supplier Management procedures and activities:

  • Supplier categorization and maintenance of the Supplier and Contracts Database (SCD)
  • Evaluation and set-up of new suppliers and contracts
  • Establishing new suppliers
  • Supplier and Contract Management and performance
  • Contract renewal and termination.

The first two elements within the above list are covered within the Service Design stage. The third element is part of Service Transition, and the last two are part of the Service Operation stage and are covered in more detail in those publications.





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