A Third Party Supplier Management Plan is a strategic plan that outlines the processes and procedures for managing third-party suppliers. It is designed to ensure quality, compliance, and reduce risk when working with third-party suppliers. The plan should include specific focus areas, objectives, KPIs, and actions to ensure that all third-party suppliers are meeting the standards outlined in the plan.
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
The Third Party Supplier Management Plan template is designed for procurement and supply chain teams to use for setting up plans for managing third-party suppliers. The template can help teams to identify and evaluate potential suppliers, set quality standards, define risk mitigation strategies, and measure performance.
A focus area is a broad area of focus when it comes to managing third-party suppliers. Examples of focus areas could include establishing third-party supplier management plans, monitoring third-party supplier performance, and managing supplier relationships. Each focus area should have its own objectives, KPIs, and actions to ensure that all third-party suppliers are meeting the standards outlined in the plan.
Objectives are specific goals that are set for each focus area. These objectives should be measurable and achievable, and should be aligned with the overall goals of the plan. For example, under the focus area of establishing third-party supplier management plans, objectives could include ensuring quality compliance and reducing risk of supplier non-performance.
KPIs are measurable targets that are set to help track progress towards an objective. They should be specific and measurable, and should be set to help track progress towards each objective. For example, under the objective of reducing risk of supplier non-performance, a KPI could be to reduce supplier non-performance incidents by 15%.
Projects, also known as actions, are specific steps that need to be taken to achieve each KPI. These projects should be clearly outlined and should be aligned with the overall goals of the plan. An example of a project related to Establish Third-Party Supplier Management Plan could be: Establish quality standards .
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