proactive risk identification and management, for example. B may affect the delivery of services/compliance with contract requirements by a supplier; However, contract and supplier management is closely linked. Effective supplier management is very difficult in the absence of basic contract management disciplines. It would be difficult to discuss strategic partnerships, innovation or joint ventures if you do not understand the details of the supplier contract. You need to understand the supplier`s daily results. In order to minimize the risks to the project, this section may also involve the purchase of essential products and components that are not provided to the project client, but which are used for the development and maintenance of the product or service (for example. B development tools and test environments). As a general rule, the products to be acquired by the project are determined in the early stages of product design and development. The « Technical Solution » section provides procedures for determining which products and product components can be purchased by suppliers. The objective of contract and supplier management is to cooperate closely with suppliers and internal customers: suppliers can take many forms depending on commercial requirements, including internal suppliers (i.e.
those who are in the same organization but are outside the project), production capacity and laboratories and commercial suppliers. (See the definition of the supplier in the glossary. This process area does not directly address the agreements in which the supplier is integrated into the project team and uses the same processes and reports to the same manager as product designers (z.B integrated teams). Typically, these situations are dealt with by other processes or functions, perhaps outside the project, although some of the specific practices in this area of process may be useful in managing the formal agreement with such a supplier. A « leading authority » may have been agreed during the strategic phase. Legally, they are responsible for contractual agreements with the supplier (i.e. monitoring overall compliance with key performance indicators and service level agreements). Implementation of improvement plans in the event of inadequacy. The use of supplier know-how in pursuing cost and efficiency gains appropriately influences supplier activity and decisions to improve value for money, beyond cost savings; The objective of the management of the Supplier Agreement (SAM) is to manage the purchase of products from suppliers.
As a priority for the development of initiatives and innovations, Business Management provides activities across a supplier`s contractual portfolio. These activities are generally more strategic and longer-term activities. Some examples are a project to move to reusable pallets for all products and contracts provided by the supplier. Or for a stationery supplier that is turning to a new online catalog ordering system. Maximizing the value for money of suppliers and contract organizations should incorporate sufficin controls into their contract management activities. It also means that suppliers are coming to the new Data Protecton legislation.