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<p>&nbsp;</p>

<p><b>Process name:</b> <a href="#Process_description">Manage suppliers</a> - <b>Part of:</b> <a href="/wiki/en/index.php/Service_Management_Processes#Supporting_processes" title="The supporting processes in YaSM service management">Supporting processes</a>
</p><p><b>Previous process:</b> <a href="/wiki/en/index.php/SP10:_Manage_human_resources" title="SP10: Manage human resources">Manage human resources</a>
</p><p><b>Next process:</b> <a href="/wiki/en/index.php/SP12:_Manage_service_financials" title="SP12: Manage service financials">Manage service financials</a></html>
<p>&nbsp;</p>

==Process description==

<html><span id="md-itempage-description" itemprop="description">The supplier management process in YaSM (<a href="https://yasm.com/wiki/en/img/yasm-process/Manage-suppliers-yasm-sp11.jpg" title="YaSM supplier management (SP11)">fig. 1</a>) ensures that all agreements with suppliers support the needs of the business, and that all suppliers meet their contractual commitments.</span></p>

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<img style="margin:20px 0px 10px 0px; float:left;" srcset="https://yasm.com/wiki/en/img/yasm-process/480px/Manage-suppliers-yasm-sp11.jpg 480w, https://yasm.com/wiki/en/img/yasm-process/800px/Manage-suppliers-yasm-sp11.jpg 800w, https://yasm.com/wiki/en/img/yasm-process/Manage-suppliers-yasm-sp11.jpg 1200w" sizes="100vw" src="https://yasm.com/wiki/en/img/yasm-process/Manage-suppliers-yasm-sp11.jpg" width="800" height="800" title="Manage suppliers. - YaSM supplier management process SP11" alt="Fig. 1: Manage suppliers. - YaSM supplier management process SP11. - Related with: Practice of ITIL 4 supplier management." /></a><br style="clear:both;"/>
<div class="thumbcaption" style="margin:15px 0px 20px 0px"><span itemprop="caption"><span style="font-variant:small-caps;"><b>Fig. 1: 'Manage suppliers'</b><br /><a href="https://yasm.com/wiki/en/img/yasm-process/Manage-suppliers-yasm-sp11.jpg" title="YaSM supplier management SP11">YaSM supplier management process ('SP11')</a>.</span></span></div></div></div><br style="clear:both;"/>

<p>One of the key responsibilities of the process is setting up externally supplied supporting services.</p>

<p>If external supporting services need to be put in place as part of a service development project, service design will provide the requirements for such services. The supplier manager is then in charge of selecting suitable suppliers and negotiating the precise details of the services to be delivered (documented in service definitions and external service agreements).</p>

<p>Once supplier agreements are in place, supplier management performs regular reviews of the agreements to ensure that the contracts continue to be in line with business needs. It also monitors on an ongoing basis if the suppliers meet their contractual commitments and takes corrective action if required.</p>

<p>Last but not least, the supplier management process procures the various goods required by the service provider organization, such as spare parts, licenses and consumables.</p>
<p>&nbsp;</p>

<p><i><u>Compatibility</u>: The YaSM supplier management process is <a href="/wiki/en/index.php/YaSM_and_ISO_20000#ISO_20000_requirements_and_related_service_management_processes" title="YaSM and ISO 20000">aligned with ISO 20000</a>, the international standard for service management (see ISO/IEC 20000-1:2018, sections <a href="/wiki/en/index.php/YaSM_and_ISO_20000#Leadership" title="ISO 20000 section 5: Leadership">5</a>, <a href="/wiki/en/index.php/YaSM_and_ISO_20000#Operational-planning-and-control" title="ISO 20000 section 8.1: Operational planning and control">8.1</a> and <a href="/wiki/en/index.php/YaSM_and_ISO_20000#Relationship-and-agreement" title="ISO 20000 section 8.3: Relationship and agreement">8.3</a>), and it <a href="/wiki/en/index.php/YaSM_and_ITIL#ITIL-4-Supplier-management" title="ITIL 4 practices and YaSM processes: ITIL 4 supplier management">corresponds to the practice of 'ITIL 4 supplier management'</a>.</i></html>

==Sub-processes==

<html>YaSM's supplier management process has the following sub-processes:</p>

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<dl id="SP11.1"><dt itemprop="name">SP11.1: Set up external supporting services</dt>
<dd itemprop="description">Process objective: To set up external supporting services. This process is typically called upon during service implementation if new or changed external supporting services are needed for a new service.</dd></dl>
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<dl id="SP11.2"><dt itemprop="name">SP11.2: Procure infrastructure items</dt>
<dd itemprop="description">Process objective: To procure infrastructure items. This process is called upon, for example, during service implementation if new technical infrastructure is needed for a new service, or during service operation if spare parts are to be procured.</dd></dl>
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<dd itemprop="description">Process objective: To communicate with suppliers on a regular basis in order to discuss any issues related to their performance, to identify potentials for improving the cooperation and to learn about the suppliers' plans for the future.</dd></dl>
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<dd itemprop="description">Process objective: To monitor the performance of the suppliers, in particular third-party suppliers providing or operating services or processes. This includes verifying if service targets and other contractual obligations are fulfilled, as well as identifying the causes of nonconformities and opportunities for improvement.</dd></dl>
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<dl id="SP11.5"><dt itemprop="name">SP11.5: Renew or terminate supplier agreements</dt>
<dd itemprop="description">Process objective: To assess on a regular basis if agreements with suppliers are still relevant before renewing those agreements, and to terminate agreements which are no longer needed.</dd></dl>
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<dl id="SP11.6"><dt itemprop="name">SP11.6: Check supplier invoices</dt>
<dd itemprop="description">Process objective: To check incoming supplier invoices for correctness before forwarding them to financial management for settlement.</dd></dl>
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<dl id="SP11.7"><dt itemprop="name">SP11.7: Handle supplier disputes</dt>
<dd itemprop="description">Process objective: To record supplier disputes, to assess the disputes and their underlying arguments, and to determine the steps required to resolve the disputes.</dd></dl>
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<dd itemprop="description">Process objective: To continuously monitor the processing status of outstanding supplier disputes and to take corrective action if required.</dd></dl>
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==Process outputs==

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<p><span itemprop="description">This section lists the documents and records produced by 'supplier management'.</span> YaSM data objects <a href="#ydo" title="YaSM data object">[*]</a> are marked with an asterisk, while other objects are displayed in gray.</p>

<dl>
<div itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="External-service-agreement">External service agreement</dt>
<dd itemprop="description" style="margin-bottom: 1em;">An agreement between a service provider and an external supplier for supplying a supporting service as specified in the service definition. A signed external service agreement represents a commitment by an external service supplier to supply a supporting service in line with the agreed quality, at a specified cost. A single agreement may cover multiple services. <a href="#ydo" title="YaSM data object">[*]</a></dd></div>
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<dt itemprop="name" id="Goods-received-note">Goods received note</dt>
<dd itemprop="description" style="margin-bottom: 1em;">A notification sent by the supplier manager to confirm that ordered goods or services have been received.</dd></div>
<div style="color:#636363" itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="License-or-lease-agreement">License or lease agreement</dt>
<dd itemprop="description" style="margin-bottom: 1em;">An agreement between a service provider and an external supplier governing, for example, the leasing of infrastructure items or the licensing of software.</dd></div>
<div style="color:#636363" itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="Purchase-order">Purchase order</dt>
<dd itemprop="description" style="margin-bottom: 1em;">An order to an external supplier for purchasing goods or services. If the order is for an externally supplied supporting service it is typically accompanied by a service definition specifying the properties of the service to be supplied.</dd></div>
<div itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name">Service definition</dt>
<dd itemprop="description" style="margin-bottom: 1em;">A service definition specifies the service properties, in particular the offered functionality and the guaranteed service levels. Service definitions also describe how the organization's resources are used in order to provide the service. A service can be provided using one or several other (internal or external) supporting services. See also: <a href="https://yasm.com/wiki/en/index.php/Service_Definition_-_Template" title="Service definition document template">Checklist / document template 'Service definition'</a>. <a href="#ydo" title="YaSM data object">[*]</a></dd></div>
<div itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="Supplier-dispute-record">Supplier dispute record</dt>
<dd itemprop="description" style="margin-bottom: 1em;">A record containing the details of a supplier dispute, including the actions taken to resolve the issue. <a href="#ydo" title="YaSM data object">[*]</a></dd></div>
<div style="color:#636363" itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="Supplier-dispute-status-information">Supplier dispute status information</dt>
<dd itemprop="description" style="margin-bottom: 1em;">A message containing the present status of a supplier dispute, typically sent to the supplier who is involved in the dispute.</dd></div>
<div style="color:#636363" itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="Supplier-invoice">Supplier invoice</dt>
<dd itemprop="description" style="margin-bottom: 1em;">An invoice from a supplier for the delivery of a service or product.</dd></div>
<div itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="Supplier-meeting-minutes">Supplier meeting minutes</dt>
<dd itemprop="description" style="margin-bottom: 1em;">The supplier meeting minutes record the details and findings from a meeting of the service provider with one of its external service suppliers. This report is an important input for defining service improvement initiatives. <a href="#ydo" title="YaSM data object">[*]</a></dd></div>
<div itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="Supplier-portfolio">Supplier portfolio</dt>
<dd itemprop="description" style="margin-bottom: 1em;">The supplier portfolio is used to record all information related to suppliers. The supplier portfolio is the supplier manager’s view of the external suppliers which provide goods and services to the service provider. <a href="#ydo" title="YaSM data object">[*]</a></dd></div>
<div itemprop="hasDefinedTerm" itemscope itemtype="https://schema.org/DefinedTerm">
<dt itemprop="name" id="Supplier-review-report">Supplier review report</dt>
<dd itemprop="description" style="margin-bottom: 1em;">A supplier review report provides insight into a supplier's ability to fulfill their contractual obligations. In particular, it reports on the service levels achieved in relation to the agreed targets, as specified in the service definitions. Supplier review reports will also highlight any breaches of contractual commitments and exceptional events. <a href="#ydo" title="YaSM data object">[*]</a></dd></div>
</dl>
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<p>&nbsp;</p>
<hr />
<p><i><u>Notes:</u></i>
</p><p><span id="ydo"><strong>[*]</strong> <i>"YaSM data objects"</i> are those documents or records for which the YaSM model provides detailed recommendations: Every YaSM object has an associated checklist (see <a href="https://yasm.com/wiki/en/index.php/Service_Definition_-_Template" title="Service Definition document template">document template 'Service definition'</a> and <a href="https://yasm.com/wiki/en/index.php/Service_Management_Checklists#yasm-template-example" title="Examples: YaSM checklists and document templates">more examples</a>) describing its typical contents, and an associated lifecycle diagram depicting how the status of the object changes as it is created, updated, read and archived by various YaSM processes (see <a href="https://yasm.com/wiki/en/img/yasm-project/Yasm-object-lifecycle-diagram.jpg" title="Example: YaSM object lifecycle diagram (.JPG)">example</a>).</span>
</p><p><i>"Other objects"</i> are mostly informal data or information where YaSM has less strong views about their contents. There are no associated lifecycle diagrams or checklists.</html>

==Process metrics==

Process metrics are used, for example, to assess if the service management processes are running according to expectations.

For suggestions of [[Service Management Metrics|suitable metrics]], please refer to the [[Service_Management_Metrics#Metrics_for_the_supplier_management_process|list of metrics for the YaSM supplier management process]].

==Roles and responsibilities==

<span id="responsible">Process owner: The '''supplier manager''' is responsible for ensuring that value for money is obtained from all suppliers. This role makes sure that the contracts with external suppliers support the service provider's needs, and that all suppliers meet their contractual commitments.</span>

<p>&nbsp;</p>

{| class="wikitable" style="background: white; font-size: 95%"
|+style="background:#465674; color:#ffffff; font-size: 110%"|Responsibility matrix: 'SP11: Manage suppliers'
|- style="vertical-align:top"
! colspan="2"| YaSM role / sub-process
! [[YaSM Roles#Financial-manager|Financial manager]]
! [[YaSM Roles#Supplier-manager|Supplier manager]]
|- style="text-align:center"
| SP11.1
| style="text-align:left"|[[#SP11.1|Set up external supporting services]]
|R	
|AR
|- style="text-align:center"
|SP11.2
| style="text-align:left"|[[#SP11.2|Procure infrastructure items]]
|R	
|AR
|- style="text-align:center"
|SP11.3	
| style="text-align:left"|[[#SP11.3|Hold supplier meetings]]
| -
|AR
|- style="text-align:center"
| SP11.4	
| style="text-align:left"|[[#SP11.4|Review supplier performance]]
| -
|AR
|- style="text-align:center"
| SP11.5	
| style="text-align:left"|[[#SP11.5|Renew or terminate supplier agreements]]
| -
|AR
|- style="text-align:center"
| SP11.6	
| style="text-align:left"|[[#SP11.6|Check supplier invoices]]
| -
|AR
|- style="text-align:center"
| SP11.7	
| style="text-align:left"|[[#SP11.7|Handle supplier disputes]]
| -
|AR
|- style="text-align:center"
| SP11.8	
| style="text-align:left"|[[#SP11.8|Monitor supplier disputes]]
| -
|AR
|}

<p>&nbsp;</p>

== Notes ==

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<p style="margin-top: 0; word-wrap:normal;">Is&nbsp;based&nbsp;on:&nbsp;The supplier management process from the <a href="https://yasm.com/en/products/yasm-process-map" title="YaSM Process Map">YaSM Process Map</a>.</p>
<p>By:&#160;&#160;Stefan Kempter&#160;<a href="https://www.linkedin.com/in/stefankempter"><img style="margin:0px 0px 0px 0px;" src="/wiki/en/img/yasm-wiki/bookmarking/linkedin.jpg" width="16" height="16" title="By: Stefan Kempter | Profile on LinkedIn" alt="Author: Stefan Kempter, IT Process Maps GbR" /></a>&#160;&#160;and&#160;&#160;Andrea Kempter&#160;<a href="https://www.linkedin.com/in/andreakempter"><img style="margin:0px 0px 0px 0px;" src="/wiki/en/img/yasm-wiki/bookmarking/linkedin.jpg" width="16" height="16" title="By: Andrea Kempter | Profile on LinkedIn" alt="Contributor: Andrea Kempter, IT Process Maps GbR" /></a>, IT Process Maps.<br style="clear:both;"/><p>

<p>&nbsp;</p>

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