What is the purpose of supplier management in ITIL 4?

Supplier management in ITIL 4 is designed to ensure that suppliers and partners are effectively managed throughout their lifecycle. This involves establishing and maintaining a productive relationship between the organization and its suppliers, which is crucial for achieving strategic objectives and delivering quality services. Effective supplier management helps ensure that suppliers meet their contractual obligations, deliver the expected value, and support the overall service management processes of the organization.

By effectively managing suppliers, organizations can improve the quality of the products and services received, promote better communication and collaboration, and mitigate risks associated with supplier relationships. This practice is intended to maximize the value obtained from suppliers while minimizing risks and costs related to the supply chain.

In contrast, enhancing vendor negotiation skills may be a part of the supplier management process but does not encompass the full purpose of supplier management, which focuses on overall relationship management. Eliminating supplier contracts would counterproductive to the goals of managing supplier relationships effectively, as contracts are necessary to outline expectations and deliverables. Increasing costs associated with suppliers runs counter to the objective of optimizing supplier relationships and maximizing value, which includes managing costs efficiently.