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Representative POMs are described for Supplier Relationships at each level of maturity.

1Initial

• Practice

  Best endeavours of available personnel.

2Basic

• Practice

  Define supplier engagement strategy based on 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.

  Metric

  % of engagements managed vs price% engagements managed vs delivery% engagements managed vs qualityhistorical analysis: price, availability, quality

• Practices

  • Define the IT supplier engagement model.
  • Criteria may include: contact points, escalation procedures, the frequency of operational and strategic planning and review meetings, and a description of roles and responsibilities.

  Outcome

  In some cases interactions are efficient, and problems and conflicts can be resolved.

  Metric

  % of supplier relationships managed using the defined IT supplier engagement model

3Intermediate

• Practice

  Define supplier engagement strategy emphasising focus on quality (as well as price and availability).

  Outcomes

  • There is a heightened focus on quality across all interactions with IT suppliers.
  • Improvements in quality of product/services occur.

  Metric

  % of engagements managed vs quality, historical analysis: quality of product/services

• Practice

  Assign a relationship manager or supplier account manager to preferred (Tier 1) suppliers, ensuring mutual understanding, appreciation and respect of organizational cultural differences.

  Outcomes

  • There is greater potential for idea-sharing, and a reduction in information bottlenecks.
  • Issues can be understood increasingly from the supplier's point of view, while communicating the procuring organization's own requirements and priorities.

  Metric

  % of preferred (Tier 1) suppliers for whom relationship managers or supplier account managers have been assigned # of major incidents with suppliers

4Advanced

• Practice

  Define supplier 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.

  Metric

  % of engagements managed vs knowledge sharing #Tri-partite meetings

• Practice

  Collate relationship management feedback across the supplier base from all sources — invite Tier 1 suppliers to perform a 360 degree review; review alignment of objectives; incentivising high supplier participation.

  Outcome

  The supplier base can be managed holistically, rather than in silos, so that recurring issues can be dealt with efficiently.

  Metric

  Percentage of suppliers for whom relationship management feedback is collated centrally

5Optimized

• Practice

  Define supplier engagement strategy to focus on enabling collaboration across supply chain/ecosystem.

  Outcome

  Joint initiatives, supporting the organization, exist between suppliers in the supply chain/ecosystem.

  Metric

  # of joint initiatives involving multiple suppliers

• Practice

  Regularly benchmark supplier relationship management practices and performance by comparing with peer organizations.

  Outcome

  The ability to identify opportunities for improvement is enhanced.

  Metric

  # of relationship management practices benchmarked