Supplier Lifecycle Management
Supplier Lifecycle Management is a best practice approach for selection, monitoring, classification and creation a long-term partnership to:
- Mitigating risk
- Reduce costs
- Ensure compliance
- Sustainable supplier relationship
It is end-to-end approach to managing suppliers in a transparent and structured way.
Four Stages in the Supplier Lifecycle:
1. Supplier Selection:
Supplier selection, qualification including the identification of sub-tier suppliers.
2. Performance Monitoring
Expected levels of performance, process reviews, performance evaluations, improvement plans, and exit strategies.
3. Supplier Classification
Supplier classification system, e.g. non-approved, approved, preferred, certified, partnership, and disqualified
4. Partnerships & Alliances
Strategies for developing customer-supplier partnerships and alliances.