The Procurement Glossary » Supplier Management

Supplier Management

Suppliers & Vendors

Definition

The discipline of selecting, onboarding, evaluating and developing suppliers to maximise value and minimise risk over time.

Explanation

Supplier management spans the whole relationship after selection: performance monitoring, risk management, relationship building and development. Done well, it turns suppliers into a source of reliability, innovation and savings rather than just a cost.

Example

Quarterly reviews, scorecards and improvement plans make up the team's supplier-management programme for its top 20 vendors.

Related terms

• Supplier Relationship Management (SRM) — A strategic approach to managing key supplier relationships to unlock mutual value beyond price.
• Supplier Performance Management — The ongoing measurement of how well suppliers meet expectations on quality, delivery, cost and service.
• Supplier Segmentation — Grouping suppliers by importance and risk so management effort is focused where it delivers most value.
• Supplier Risk — The exposure a buyer faces from a supplier's potential failure — financial, operational, compliance or reputational.

Related concepts

• Supplier Management — Onboarding, qualifying, evaluating and governing the suppliers a business relies on — turning a scattered vendor list into a managed supply base.

Learn more

• Supplier Evaluation Guide

Frequently Asked Questions

What is Supplier Management?

The discipline of selecting, onboarding, evaluating and developing suppliers to maximise value and minimise risk over time. Supplier management spans the whole relationship after selection: performance monitoring, risk management, relationship building and development. Done well, it turns suppliers into a source of reliability, innovation and savings rather than just a cost.

Can you give an example of Supplier Management?

Quarterly reviews, scorecards and improvement plans make up the team's supplier-management programme for its top 20 vendors.

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