What does effective Supplier Agreement Management aim to maximize?

Effective Supplier Agreement Management primarily aims to ensure that the deliverables and efforts outlined in a contract are successfully completed and meet the agreed-upon standards. This involves establishing clear expectations between the acquirer and the supplier, which contributes to a mutual understanding of responsibilities, timelines, and quality requirements. By focusing on the success of deliverables, Supplier Agreement Management ensures that both parties work collaboratively towards fulfilling the contractual obligations, ultimately leading to better outcomes for both the acquirer and the supplier.

Although cost savings, supplier visibility, and vendor connectivity are important aspects of managing supplier relationships, they are secondary to the primary goal of ensuring that the agreements made regarding deliverables are effectively met. The success of deliverables is crucial as it not only reflects the performance of the supplier but also supports the overall objectives of the organization relying on those deliverables for its operations.