SIG University Certified Supplier Management Professional (CSMP) program graduate Gicela Isla-Richter breaks down the importance of the selecting the correct sourcing business model and the levels of supplier management.
The CSMP course has provided me with the tools and methodologies to help my company ensure that the supplier provides value and complies with applicable internal and external business rules. Equally important, we can better mitigate risks and work more effectively by providing the right amount of effort to manage and build a collaborative relationship with its key suppliers.
Not all suppliers should be managed the same way: each supplier requires a “right-sized” level of governance!
What is Supplier governance?
It is a framework mutually agreed upon by the buyer and supplier. It establishes and enforces rules, distributes authority, defines working environments and identifies risks.
Depending on the importance of the service or product, supplier governance can span through multiple levels of company governance: i.e., corporate, business unit, and contract governance.
Gicela Isla-Richter, Enterprise Risk Manager, Investment Industry Regulatory Organization of Canada