Manage stage
- Signing the contract is the start of your relationship with the supplier, not the end.
- Managing the arrangement helps deliver value for money and drive the best from the supplier relationship.
Manage supplier relationships
Signing an agreement with a supplier isn’t the end of the procurement process. It's the beginning of your ongoing relationship with them.
You need to manage the contract to make sure the supplier delivers what they have committed to. Strong supplier relationships can also deliver value and benefits beyond the contract.
M1 Implement arrangement
Between signing the agreement and starting the project, aim to lay the basis of a successful relationship with the supplier. To do this, you should:
- define the right level of internal resources and management, depending on the importance and complexity of the arrangement
- ensure the smooth transition of services, especially if it's a new supplier
- work with the supplier to establish systems and processes, and determine who’s responsible for key tasks
- engage stakeholders to communicate the new arrangement to them.
M2 Manage arrangement
Your goal should always be to deliver value for money and drive the best out of the supplier relationship. To do this, you should:
- maintain the right level of governance and resources, depending on the importance and complexity of the arrangement
- coordinate with the supplier and key stakeholders to manage performance, drive continuous improvement and encourage innovation
- track and report on the benefits to demonstrate that the supplier is delivering value for money.
- Benefits realisation plan(link is external) DOCX, 128.24 KB
- Benefits realisation register XLSX, 168.53 KB
- Supplier performance report DOCX, 914.56 KB
- Supplier performance report XLSX, 178.81 KB
- Contract extension letter DOCX, 163.43 KB
- Deed of variation DOCX, 52.98 KB
- Supplier relationship management guidelines PDF, 553.86 KB
- SRM strategic meeting template DOCX, 78.17 KB
- SRM business review meeting template DOCX, 78.66 KB
- SRM tactical meeting template DOCX, 77.69 KB
- SRM operational meeting template DOCX, 78.96 KB
M3 Renew
You should be considering your strategy for the next arrangement throughout the manage stage. This means constantly planning for renewal.
By continually assessing and improving your procurement processes, you’ll help provide the best possible outcome for the next arrangement.
Before the contract expires you should:
- open a dialogue with the supplier and internal stakeholders on the strengths and weaknesses of the existing contract
- begin a demand and market analysis that will inform your next procurement strategy.