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Managing Suppliers and Partners as Part of the Service

ESMi Knowledge Team

· 3 min read

In brief

Suppliers and partners should be managed as part of the end-to-end service, according to their contribution to consumer outcomes, risk, innovation and relationship value, rather than purely against isolated contractual obligations.

  • Map supplier contributions to services. Understanding where each external organisation contributes to a service makes clear who owns what, what good looks like and when it will be reviewed.
  • Set outcome-aligned obligations. Contracts, measures and relationships should reinforce consumer outcomes. Managing only contract compliance, or rewarding local performance that harms the whole service, are both pitfalls to avoid.
  • Create operational and strategic forums. Suppliers should not be kept outside service reviews. In the article's example, a hosting supplier joins the service review because its maintenance choices affect a customer commitment even when its own target remains green.
  • Share improvement evidence and measure what matters. Useful measures include end-to-end contribution, supplier risk and improvement delivered, read together so a strong headline does not hide deteriorating quality, risk or consumer effort elsewhere. After the first cycle, ask whether improvement delivered moved for the intended reason and whether any group experienced a worse result, then retain only what improves value, flow, resilience or experience.

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