8. Supplier Management




For building a value network and managing contracts:

  • Manages overall network and value chain; working toward integrating contracts/policies with our own.
  • Ensures suppliers meet terms conditions and terms of contracts.
  • Establish new suppliers in transition.
  • Review performance and renew/terminate contracts in operation.



Objectives include:

  • Ensure that suppliers meet the service targets, terms, and conditions contained in their contracts.
  • Ensure that the underpinning contracts and agreements with suppliers are aligned to business needs.
  • Manage supplier performance through targets outlined in SLRs and SLAs.
  • Manage relationships with suppliers.
  • Negotiate and agree contracts with suppliers and manage them through their lifecycle.


Service Provider vs. Supplier


  • Service Provider (help with email) – supplies IT services to customers.
  • Supplier (give you box) – supplies goods required to delivery IT services (telco’s, consultants, etc.). These are written as UC’s.



Supplier Categories - Strategic, tactical, operational, commodity