Supplier Management Terminology Explanation

Supplier service improvement plans (SSIP):

Used to record all improvement actions and plans agreed between suppliers and service providers.
Supplier Survey Reports:

Feedback gathered from all individuals that deal directly with suppliers throughout their day to day role. Results are collated and reviewed by Supplier Management, to ensure consistency in quality of service provided by suppliers in all areas.

Supplier & Contract performance reports:
Used as input for the Supplier & Contract review meetings to manage the quality of the service provided by suppliers and partners. This should include information on shared risk, when appropriate.

Types of Supplier Arrangements:
An informal combination of insourcing and outsourcing, using a number of outsourcing organizations working together to co-source key elements within the lifecycle.

Partnership or multi-sourcing:

Formal arrangements between two or more organizations to work together to design, develop transition, maintain, operate, and/or support IT service(s). The focus here tends to be on strategic partnerships that leverage critical expertise or market opportunities.

Business Process Outsourcing:

Formal arrangements where an external organization provides and manages the other organization’s entire business process(es) or functions(s) in a low cost location. Common examples are accounting, payroll and call centre operations.

Knowledge Process Outsourcing:

This is a new enhancement of Business Process Outsourcing, where external organizations provide domain based processes and business expertise rather than just process expertise and requires advanced analytical and specialized skills from the outsourcing organization.

Application Service Provision:

Where external organizations provide shared computer based services to customer organizations over a network. The complexities and costs of such shared software can be reduced and provided to organizations that could otherwise not justify the investment.

Recommended For You

Leave a Reply