What is a Third Party Supplier Management Plan?
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.
What's included in this Third Party Supplier Management Plan template?
- 3 focus areas
- 6 objectives
- 6 projects
- 6 KPIs
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
Who is the Third Party Supplier Management Plan template for?
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.
1. Define clear examples of your focus areas
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.
2. Think about the objectives that could fall under that focus area
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.
3. Set measurable targets (KPIs) to tackle the objective
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%.
4. Implement related projects to achieve the KPIs
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 .
5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy
Cascade is a comprehensive strategy execution platform that helps teams to efficiently track and monitor progress towards objectives, KPIs, and projects. It is designed to help teams to quickly and easily identify areas that need improvement, and to ensure that all objectives, KPIs, and projects are being met in a timely manner. With Cascade, teams can see faster results from their strategies and more successful outcomes from their strategic plans.