Supplier management SUPP

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

Revision notes

Updates for SFIA 9

Theme(s) influencing the updates for this skill: Making SFIA easier to consume (enhance readability/guidance/descriptions).
Content and/or readability changes have been made to level 7.
You can move to SFIA 9 when you are ready - SFIA 8 skill descriptions will still be available to use.
Previous SFIA assessments or skills mapping are not impacted by this change.

Guidance notes

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 with suppliers for mutual benefit to resolve operational incidents, problems, unsatisfactory performance and other sources of conflict
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
incorporating supplier management practices tailored to cloud-based services
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 responsibilities.

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 who are performing higher level tasks and activities

Where higher levels are not defined...

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

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

Show/hide extra descriptions and levels.

Levels of responsibility for this skill

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.

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.

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 guides others, delegates tasks when appropriate, works autonomously under general direction, and contributes expertise to deliver team objectives.

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 delivering significant work outcomes, from analysis through execution to evaluation.

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 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, promotes organisational collaboration, and accepts accountability in key areas.

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 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.

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

Leads collaborative supplier partnerships. Aligns supplier performance and relationship management with business objectives and sourcing strategies.

Establishes frameworks for supplier governance and service monitoring.

Ensures commercial value from contracts and represents the organisation in significant supplier disputes.

Small change