ITIL 4 Supplier Mgmt flashcards
ITIL 4 Supplier Mgmt · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Supplier management definition
- The practice of ensuring that an organization's suppliers and their performance are managed appropriately to support the seamless provision of quality products and services.
- Value co-creation
- The principle that value emerges from interaction between the organization and its suppliers and customers, not from the supplier alone, so relationships must be actively managed.
- Third-party risk
- Risk arising from reliance on external suppliers, including failure, data breach, financial collapse, or non-compliance, which remains the organization's responsibility to its customers.
- Supplier versus partner
- A supplier provides products or services under contract; a partner shares risk, reward, and strategic goals, requiring deeper collaboration and joint governance.
- Four dimensions
- Organizations and people, information and technology, partners and suppliers, and value streams and processes; supplier management must be addressed across all four.
- Collaborate and promote visibility
- An ITIL guiding principle requiring shared roadmaps, performance data, and risk information with suppliers so decisions are made on common facts.
- Supplier policy
- A formally approved document defining principles, roles, approval authorities, mandatory controls, and review requirements for how the organization sources and manages suppliers.
- Make-or-buy decision
- A sourcing decision comparing internal capability against external provision on cost, control, risk, quality, and strategic importance, rather than price alone.
- Total cost of ownership
- The full cost of a supplier relationship, including acquisition, integration, management, risk, and exit costs, used to judge sourcing decisions beyond unit price.
- Supplier strategy alignment
- Supplier strategy must derive from organizational strategy and objectives so sourcing choices support service value chain outcomes rather than local preferences.
- Decision rights
- Explicitly assigned authority for approving new suppliers, signing contracts, changing scope, and terminating relationships, preventing unauthorized commitments.
- Supplier concentration risk
- Exposure created when too much spend or critical capability depends on one supplier or region, requiring contingency plans and diversification.
- Supplier segmentation
- Grouping suppliers by strategic importance, spend, risk, and dependency so management effort and governance intensity match value and exposure.
- Strategic supplier
- A supplier with high business impact and high supply risk, managed through executive sponsorship, joint planning, and frequent performance reviews.
- Commodity supplier
- A supplier providing low-risk, easily substitutable goods or services, managed transactionally through catalogues, standard terms, and periodic price review.
- Kraljic matrix
- A portfolio model classifying purchases by profit impact and supply risk, producing leverage, strategic, bottleneck, and non-critical categories with distinct management approaches.
- ABC spend analysis
- Ranking suppliers by spend volume into A, B, and C tiers to prioritize negotiation, contract review, and management attention on the highest-value relationships.
- Sole-source supplier
- The only available provider of a needed product or service, representing high supply risk that requires continuity planning and close monitoring.
- Supplier register
- An inventory of suppliers recording owner, segment, risk rating, contract dates, and services provided, used to govern the supplier base.
- Supplier lifecycle
- The end-to-end sequence from identifying need through selection, due diligence, contracting, onboarding, performance management, review, and renewal or exit.
- Due diligence
- Pre-contract assessment of a supplier's financial health, security posture, compliance, references, and continuity capability before committing to the relationship.
- Back-to-back SLAs
- Supplier service levels set equal to or stricter than the commitments the organization makes to its customers, preventing gaps in end-to-end obligations.
- Contract register
- A record of all contracts with key dates, value, owner, obligations, and renewal terms, used to prevent missed renewals and unmanaged commitments.
- Exit plan
- A documented approach for ending a supplier relationship covering data return, transition assistance, knowledge transfer, notice periods, and service continuity.
- Contract change control
- A formal process through which scope, price, or service level changes are requested, assessed, approved, and recorded rather than agreed informally.
- Supplier onboarding
- The process of integrating a new supplier, covering access provisioning, security requirements, contact and escalation matrices, and performance baselines.
- Supplier scorecard
- A structured set of KPIs and SLAs reported periodically to show supplier performance against targets, trends, and agreed improvement actions.
- Service review versus business review
- Operational service reviews address performance and incidents at working level; strategic business reviews address value, roadmap, and risk with senior stakeholders.
- Escalation path
- A predefined sequence of operational, management, and contractual steps triggered when supplier performance falls below agreed thresholds.
- Relationship health check
- A qualitative assessment, often via supplier survey, capturing trust, communication, and collaboration signals not visible in SLA metrics.
- Joint improvement plan
- A shared document listing improvement actions, owners, and dates agreed with a supplier, reviewed at service and business reviews to drive continuous improvement.
- Customer-of-choice performance
- Measuring the organization's own behavior as a customer, such as clear requirements and timely payment, because it affects supplier performance and leverage.