Overview of the process
This section of the Procurement Journey outlines the process and activities associated with the contract and supplier management.
The process involves monitoring feedback from all parties and measuring performance against the pre-agreed indicators in the contract by using the Balanced Scorecard approach.
Levels of contract and supplier management
During the Develop Strategy phase you will have determined the level of management required for the proposed contract. The contract and supplier management tool describes these levels as:
Low level - ensuring compliance to the contract by managing the delivery of the contract using four high level indicators i.e. cost, quality, delivery, service.
Medium level - managing the performance of the contract and the supplier by expanding the four high level indicators and holding a minimum of one performance review meeting per annum.
High level - managing the performance of the contract and the supplier using the full balanced scorecard.
You should complete a contract and supplier management plan which will include:
Level of management (low/medium/high)
Roles and responsibilities
Escalation process
Balance scorecard
Review meetings
Throughout contract and supplier management you should constantly update your strategy with any new information e.g. changes to the market place or to the products or services, lessons learned throughout the Journey etc.
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