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Chapter 5 ■ Service Design<br />
3. Support service-level management in SLA negotiations and<br />
agreements<br />
4. Ensure relationships with the suppliers flourish through<br />
rapport-building exercises<br />
5. Track and manage supplier performance and conduct<br />
supplier performance review meetings to ensure corrective<br />
and preventive actions are undertaken by the supplier<br />
6. Manage SCMIS with supplier policies, processes, procedures,<br />
and other related documents<br />
5.7.4.3 Scope of Supplier Management<br />
The scope of the supplier management process starts with suppliers, ends with suppliers,<br />
and en<strong>com</strong>passes everything in between. This includes management of suppliers and<br />
their contracts. It includes continuing a relationship by championing through dedicated<br />
supplier managers. These relationships help in resolving conflicts and help the supplier<br />
understand the customer and the customer’s requirements better.<br />
The process has a significant role to play in today’s consideration of suppliers’<br />
dependence on delivering IT services. ITIL re<strong>com</strong>mends that a separate process be<br />
tailored for every supplier based on their importance and the role they play in value<br />
generation. When each supplier is carefully managed through processes and work<br />
activities, the sums of their individual activities generate synergy through value creation<br />
and achieving business out<strong>com</strong>es. If a supplier is adding more value, then the service<br />
provider must spend more time with him, and vice versa.<br />
From the scope perspective, supplier management process includes the following:<br />
1. Categorization of suppliers based on risk and impact versus<br />
value and importance<br />
2. Contract and SLA negotiations and agreement<br />
3. Management of SCMIS<br />
4. Draft, implement, and enforce supplier policy<br />
5. Supplier assessment and evaluation<br />
6. Contract initiation, renewal, review, and termination<br />
7. Track and manage performance reviews<br />
8. Identify improvement opportunities and work with supplier to<br />
deliver the identified opportunities<br />
9. Resolve conflicts and disputes<br />
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