Supplier management is all about getting the best from suppliers in order to ensure the delivery of services meet agreed service level targets at optimal cost. It is about getting good value for money from suppliers. It recognises that there is more to a supplier relationship than the contract, seeing the relationship as a continuing and dynamic asset that not only serves the needs of today, but also helps the IT service provider respond to new challenges and risks as the commercial, technological and social environment changes around it. It recognises the need for continual service improvement and the value of productive relationships as a platform for achieving higher service quality or better value for money or both of these things.
The scope of supplier management covers the management of all suppliers to
the IT service provider. In practice, this does not mean that all suppliers should be given equal attention. Some will have a lesser role in the delivery of IT
services, those that provide minor services or commodity items that can be easily sourced elsewhere. Some will have a much greater impact on the IT service provider, and these suppliers require more proactive management and attention, especially where their failure to deliver can have a profound effect on the ability of the IT service provider to deliver services.