Supplier Management Process

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Time
3 hours 16 minutes
Difficulty
Beginner
CEU/CPE
3
Video Transcription
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>> My learners, we are on Lesson
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5.4, supplier management process.
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Are you ready? I'm sure you're ready. Let's go.
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The learning objectives. In this video,
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we will cover the process and objectives of
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supplier management as well as the scope of
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how supplier management is
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incorporated inside the business.
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Supplier management process.
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The purpose is to obtain
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value for money from suppliers to
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ensure all contracts supplier
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support the business needs and requirements.
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This process will ensure their suppliers meet
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their contractual commitments as
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well as provide a seamless quantity of
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IT services that the business is required to have.
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That is the overall purpose of
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the supplier management process.
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When we go into the objectives
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of the supplier management process.
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Now you take a look,
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it's more of negotiate and manage contracts but
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then suppliers through their life cycles.
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You manage relationships with the suppliers.
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You manage supplier performance.
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Ensure that the value of the money is
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obtained from the suppliers and contracts
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as well as maintain
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a supplier policy in a supporting supplier in
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contract management information system for
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tracking purposes, so that's SCMIS.
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Now, you have
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to ensure that those objectives are being made
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within the supplier management
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for everything that value can be where it
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should be as that business requires.
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The scope of the supplier management.
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The process is more so responsible for managing
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all suppliers needed to support
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that provision of IT services to their business.
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The SM process will likely has to comply with
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the enterprise or
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the corporate supplier management standards and policies.
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I know some of you guys may have heard it already before,
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but it's intricate that we
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understand that there is standards
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and policies that incorporate those supplier managements.
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Suppliers should be able to manage through
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a formal process that is flexible enough
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to effectively cover suppliers of
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varying degrees of importance to that service provider.
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Generally speaking, the greater the contribution
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of the supplier it makes the business value,
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the more effort of
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the service providers should invest
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in is managing that supplier.
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Understanding that there should be
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a single owner that's established for
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each supplier relationship just
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to keep that continuity and
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net flow of relationship going throughout that process.
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Although, the individual may be the owner or
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the relationship of more than one supplier
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for that service provider,
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but allowing that constantly and that trust value
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to help implement within
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that process is very critical in that business.
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I list of the following activities
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as the scope of the SM,
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and it's management of all the supplier contracts.
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It's the adaptive based on
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the importance of the supplier.
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You had the supplier in a contract evaluations,
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the development in a negotiation
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and agreement of those contracts.
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These are all falls into the scope of it,
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and then also the management of the disputes
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and the management of the subcontracted suppliers.
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Now, also you sit there and you manage
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the standard contracts, terms and conditions,
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identifying the improvement of
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opportunities of inclusions that's
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within the CSI register.
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When we start going into those particular scopes,
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that's the end of the supplier management.
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In summary, Lesson 5.4.
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Supplier management process, we gave you
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a overview of the purpose
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of the supplier management process,
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as well as the scope and
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objectives of the supplier management process.
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We will be followed on by your quiz,
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your lesson quiz, and then we go onto
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the next lesson. See you then.
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