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Supplier Management

The Supplier Management process confirms that value for money is received from the suppliers of the business and that they adhere to their contractual agreements with the organization.  In addition, Supplier Management manages the relationships with suppliers, handles the contacts and agreements with suppliers, and oversees supplier performance.

The Supplier and Contract Database (SCD) is a key aspect of Supplier Management.  This database contains all the vital information about the suppliers, their contracts, and the services and/or products they provide.  The information stored in the SCD is fundamental for Supplier Management activities, including:

  • Supplier categorization and maintenance
  • Evaluation and set-up of new suppliers
  • Forming new supplier relations
  • Supplier and Contract Management and performance
  • Contract renewal and termination

Supplier Management covers all the suppliers who interact with the business. No supplier should be exempt from this process as all contracts are essential to the business and the subsequent delivery of services. In each business, the nature of the term “supplier” must be formally defined for accuracy.

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About this author:

Angel Prusinowski

Angel is a leading ITIL® instructor at Ashford Global IT.

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