Supplier management SUPP

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Aligning the organisation’s supplier performance objectives and activities with sourcing strategies and plans, balancing costs, efficiencies and service quality.

Guidance notes

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Activities may include, but are not limited to:

establishing working relationships based on collaboration, trust, and open communication
encouraging co-innovation and service improvement with suppliers
proactively engaging suppliers for mutual benefit to resolve operational incidents, problems, poor performance and other sources of conflict
implementing supplier management practices to support cloud-based services
implementing clear escalation paths for discussing and resolving issues
managing performance and risks across multiple suppliers (internal and external) using a set of agreed metrics
ensuring compliance to legislation
commercial governance and supply chain management
managing risks associated with security, continuity and integrity of supply
implementing policies for selection of suppliers and bench-marking supplier performance.

Understanding the responsibility levels of this skill

Where lower levels are not defined...

Specific tasks and responsibilities are not defined because the skill requires a higher level of autonomy, influence, and complexity in decision-making than is typically expected at these levels. You can use the essence statements to understand the generic responsibilities associated with these levels.

Where higher levels are not defined...

Responsibilities and accountabilities are not defined because these higher levels involve strategic leadership and broader organisational influence that goes beyond the scope of this specific skill. See the essence statements.

Developing skills and demonstrating responsibilities related to this skill

The defined levels show the incremental progression in skills and reponsibilities.

Where lower levels are not defined...

You can develop your knowledge and support others who do have responsibility in this area by:

Learning key concepts and principles related to this skill and its impact on your role
Performing related skills (see the related SFIA skills)
Supporting others with tasks (generic examples are provided by the essence statements for each level)

Where higher levels are not defined...

You can progress by developing related skills which are better suited to higher levels of organisational leadership.

Levels

Defined at these levels:

Click to learn why SFIA skills are not defined at all 7 levels.

Show/hide extra descriptions and levels.

Level 1

Level 1 - Follow: Essence of the level: Performs routine tasks under close supervision, follows instructions, and requires guidance to complete their work. Learns and applies basic skills and knowledge.

Supplier management: Level 2

Level 2 - Assist: Essence of the level: Provides assistance to others, works under routine supervision, and uses their discretion to address routine problems. Actively learns through training and on-the-job experiences.

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Assists in the collection and reporting of supplier performance data.

Assists with the routine day-to-day communication between the organisation and suppliers.

Supplier management: Level 3

Level 3 - Apply: Essence of the level: Performs varied tasks, sometimes complex and non-routine, using standard methods and procedures. Works under general direction, exercises discretion, and manages own work within deadlines. Proactively enhances skills and impact in the workplace.

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Acts as the routine contact point between the organisation and suppliers.

Supports resolution of supplier-related incidents, problems, or unsatisfactory performance.

Collects and reports on supplier performance data.

Supplier management: Level 4

Level 4 - Enable: Essence of the level: Performs diverse complex activities, supports and supervises others, works autonomously under general direction, and contributes expertise to deliver team objectives.

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Collects supplier performance data and investigates problems.

Monitors and reports on supplier performance, customer satisfaction, adherence to security requirements and market intelligence. Validates that suppliers' performance is in accordance with contract terms.

Engages proactively and collaboratively with suppliers to resolve incidents, problems, or unsatisfactory performance.

Implements supplier management-related service improvement initiatives and programmes.

Supplier management: Level 5

Level 5 - Ensure, advise: Essence of the level: Provides authoritative guidance in their field and works under broad direction. Accountable for achieving workgroup objectives and managing work from analysis to execution and evaluation.

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Manages suppliers to meet key performance indicators and agreed targets.

Manages the operational relationships between suppliers and ensures potential disputes or conflicts are raised and resolved.

Performs bench-marking and makes use of supplier performance data to ensure that performance is adequately monitored and regularly reviewed. Use suppliers' expertise to support and inform development roadmaps.

Manages implementation of supplier service improvement actions. Identifies constraints and opportunities when negotiating or renegotiating contracts.

Supplier management: Level 6

Level 6 - Initiate, influence: Essence of the level: Has significant organisational influence, makes high-level decisions, shapes policies, demonstrates leadership, fosters organizational collaboration, and accepts accountability in key areas.

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Develops organisational policies, standards, and guidelines to ensure effective supplier management across the integrated supply chain.

Defines the approach for commercial communications and the management of relationships with suppliers. Establishes a positive and effective working environment with suppliers for mutual benefit.

Ensures that resources and tools are in place to conduct bench-marking. Reviews supplier analysis and assesses effectiveness across the supply chain.

Manages risks and assures the quality of the services delivered by suppliers.

Supplier management: Level 7

Level 7 - Set strategy, inspire, mobilise: Essence of the level: Operates at the highest organisational level, determines overall organisational vision and strategy, and assumes accountability for overall success.

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Determines overall supplier management strategy, embracing effective management and operational relationships at all levels.

Leads collaborative supplier partnerships.

Aligns supplier performance objectives and relationship management activities with business and commercial objectives and sourcing strategies.

Establishes a framework for supplier governance and to monitor the service provided and deliver commercial value from contracts. Represents the organisation in commercially significant disputes involving suppliers.