Supplier Management

The ISO 20000 standard for IT Service Management includes requirements in clause 7.3 for Supplier Management. The objective of these requirements is to manage suppliers to ensure the provision of seamless, quality services.

Requirements: 

An organization conforming to ISO 20000 is required to document their supplier management processes and name a contract manager responsible for each supplier. They are also required to document, and have all parties agree upon, service level agreements that describe the requirements, scope, level of service, and communication processes to be provided by the supplier.

The service level agreements with suppliers must be aligned with the service level agreements for the business. All the interfaces between the processes used by each party must be documented and agreed upon.

The organization must clearly document all the roles and relationships between the lead and subcontracted suppliers. They must require lead suppliers to demonstrate processes to ensure that subcontracted suppliers meet contractual requirements.

Major reviews of the contract or formal agreement must be conducted at least annually to ensure that business needs and contractual obligations are still being met. Contracts and service level agreements must be changed as appropriate after these reviews, or at other times as required. Any changes must be subjected to the organization’s change management process.

A process must be established to deal with contractual disputes. And, a process must be established to deal with the expected end of service, early end of service, or transfer of service to another party.

Performance against service level targets must be monitored and reviewed. Actions for improvement identified during this process must be recorded and input into a plan for improving the service.

Documents:

  • Supplier management procedure
  • Contractual dispute procedure
  • Lead-subcontractor supplier relationships

Records

  • Supplier service level agreements
  • Supplier-service provider process interface agreements
  • Supplier service level performance records
  • Supplier management improvement actions