Introductory Notes

Integrated Supplier Management involves monitoring the new products available on the market, evaluating sources of products that might help satisfy project requirements, and using this information to select suppliers. Integrated Supplier Management also involves maintaining a cooperative project-supplier relationship, monitoring selected supplier processes, evaluating selected work products, and making appropriate adjustments in the supplier relationship and agreement.

Integrated Supplier Management involves the following activities:

• Identifying, analyzing, and selecting potential sources of products

• Evaluating and determining the sources to be used for acquiring products

• Monitoring and analyzing selected supplier processes

• Evaluating selected supplier work products

• Revising the supplier agreement or relationship as appropriate

The Integrated Supplier Management process area builds on the concepts established in the Supplier Agreement Management process area by adding practices that emphasize a cooperative relationship with suppliers. Integrated Supplier Management is designed for situations in which projects use suppliers to perform functions that are critical to the success of the project. Analyzing sources and monitoring selected supplier processes and work products before delivery of the product to the project are two such functions described in this process area.

The practices in Supplier Agreement Management, such as Select Suppliers, Establish Supplier Agreements, and Execute the Supplier Agreement, are critically tied to Integrated Supplier Management. Appropriate references are provided in both process areas to emphasize these relationships.

Integrated Supplier Management emphasizes relationships with suppliers that are collaborative and coordinated. Projects evaluate the supplier's performance and the quality of the work products for compliance with the requirements in the supplier agreement. Integrated Supplier Management is not required for projects using off-the-shelf items that are generally available and that are not modified in any way; there, the use of Supplier Agreement Management is sufficient.

The term "source" refers to a potential supplier or suppliers before selection. (See the definitions of "supplier" and "product" in the glossary.)

The supplier agreement establishes the mechanism to allow the project to oversee supplier processes and work products and to evaluate any products being acquired. It also provides the vehicle for mutual understanding between the project and the supplier.

The specific practices of this process area can be implemented either within each project, by a separate group in the organization that supports multiple projects (e.g., contract management), or some combination of the two.