Supplier Engagement
Define and manage the supplier engagement model to be adopted with suppliers.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Supplier Engagement at each level of maturity.
- 1Initial
- Practice
- Rely on the best endeavours of available personnel
- Outcomes
- There is lack of consistency and focus in dealing with suppliers.
- The rest of the business has minimal confidence in the IT fufnction and IT suppliers.
- Metrics
- Business satisfaction with IT suppliers; business satisfaction with IT.
- IT satisfaction with IT suppliers.
- IT supplier satisfaction with IT.
- 2Basic
- Practice
- Define engagement strategy around achieving on-time delivery at the lowest possible price.
- Outcome
- There is competitive pricing and improved product/service availability but the low price focus may impact adversely on quality.
- Metrics
- % of engagements managed vs price.
- % engagements managed vs delivery.
- % engagements managed vs quality.
- Historical analysis: price, availability, [quality].
- Practice
- Provide staff with training on IT supplier management relating to their specific area of responsibility.
- Outcome
- Staff awareness is raised of the importance of IT supplier Management practices within their area of responsibility.
- Metrics
- # & % of relevant staff trained in supplier management.
- # complaints from IT suppliers.
- # complaints from business.
- 3Intermediate
- Practice
- Define engagement strategy emphasising focus on quality (as well as price and availability).
- Outcomes
- There is an heightened focus on quality across all interactions with IT suppliers.
- Improvements in quality of product/services occur.
- Metric
- % engagements managed vs quality, historical analysis: quality of product/services.
- Practice
- Agree engagement strategy with the rest of the business.
- Outcome
- The rest of the business is involved in setting expectations for suppliers during the operational phase.
- Metric
- % contracts agreed jointly with the rest of the business., # complaints from the rest of the business.
- Practice
- Provide training to make relevant staff aware of impact of their decisions on other areas of the supply chain and resolve potential conflicts.
- Outcome
- There is reduced conflict between IT, the rest of the business and IT suppliers.
- Metrics
- % staff receiving IT supply chain training course.
- # complaints from other IT departments, business, IT suppliers.
- # spec changes, ….
- 4Advanced
- Practice
- Define engagement strategy to focus on encouraging knowledge sharing and collaboration.
- Outcome
- There is improved alignment and cooperation between IT, the rest of the business and IT suppliers.
- Metrics
- % engagements managed vs knowledge sharing.
- # tri-partite meetings.
- 5Optimized
- Practice
- Define engagement strategy to focus on enabling collaboration across supply chain.
- Outcome
- Joint initiatives exist between suppliers.
- Metric
- #Joint initiatives involving multiple suppliers.