4.7

Supplier Relationship Management

Sourcing is responsible for developing and managing successful supplier relationships by adopting a clearly defined and structured approach to supplier collaboration. Together with Service Management, Sourcing maintains supplier rela­tionships with regular meetings that address not only present services, but also emerging opportunities brought forth by service development and potential new applications.

Sourcing maintains a list of the company’s IT suppliers and identifies the key suppliers amongst them. It is strategically important to understand whether a supplier is critical, strategic, tactical or operative. Additionally, based on the individual supplier’s impact and value to the business, an adequate level of collaboration and performance management should be determined for each supplier.

The list should include information such as the supplier’s line of business, profile, contract information, and the extent of cooperation as well as its monetary value. Sourcing also creates and maintains the company’s IT contract portfolio. The contract portfolio comprises all contracts, including electronic versions with attachments, as well as location references for the originals.

Sourcing is responsible for the timely initiation and execution of contract revisions. It informs the Service Managers and Service Portfolio Steering about expir­ing contracts. These, in turn, authorize Sourcing to renew contracts and/or initiate tendering. Sourcing ensures that supplier cooperation runs according to the agreed governance model on the strategic, tactical and operational levels.

SSM_Supplier_Importance_for_Business_v2

Figure 4.7.1 Supplier Relationship Management should focus on strategic and tactical levels and reduce the need for operative management by using IT Service Management Systems with real time service information.

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