What Is a Vendor Agreement?

Supplier agreement management is a software development capability maturity model integration, namely Capability Maturity Model Integration Level 2 (CMMI2), one of the seven process areas (PA).

Supplier agreement management

Right!

Supplier agreement management is a software development capability maturity model integration, namely Capability Maturity Model Integration Level 2 (CMMI2), one of the seven process areas (PA).

Chinese name

Supplier agreement management

Solid

Software Development Capability Maturity Model Integration

Note 1

Choosing the right supplier

Note 2

Choosing the right supplier

During the software development process, some software and hardware must be purchased. The software may be middleware, controls, plug-ins, components, etc. The hardware may be some servers, PDAs, microcontrollers, etc. As long as the project is slightly more complicated, there will inevitably be procurement problems. Even if there is no procurement, it will be inevitable in the future. It is also possible to outsource part of the project to a third party.

As a business that wants to improve the process, this issue should not be circumvented. The purchase of software and hardware or outsourcing will fundamentally affect the cost, schedule and quality of the project. Purchasing and outsourcing can be considered as one of the most risky activities.

In order to complete the procurement activities, SAM has two SGs. The first SG is about signing agreements with suppliers. The second SG is about fulfilling supplier agreements. The following is a detailed introduction:

SG1: Agreement with the suppliers are established and maintained.

SP 1.1: Determine the type of acquisition for each product or product component to be acqured. The Chinese idea is: determine what type of thing needs to be purchased for each product or product component. The project will need to purchase some software and hardware to meet the needs of the project due to technical reasons and time. Before signing an agreement, you should first determine what type of stuff you need to purchase. It is also possible to outsource part of the project to a third party to do it, then you also need to determine what to outsource first.

SP 1.2: Select suppliers based on an evaluation of their ability to meet the specified requirements and established criteria. The main idea of the Chinese language is: to evaluate whether the supplier has the specified requirements and certain criteria, and select the appropriate supplier. When selecting a supplier, the supplier must first be able to provide products or services that meet the needs of the project. In addition, procurement is usually a company-level activity, or there will be a special procurement department. The procurement activity itself will have some specific requirements for suppliers, such as qualifications and credibility. Choosing the right supplier requires two considerations.

SP 1.3: Establish and maintain formal agreements with the supplier. Determine the content to be purchased. After selecting the supplier, you need to sign an agreement with the supplier to clarify the rights and obligations of both parties. The agreement will also provide specifications, time requirements, price requirements, etc. for the products and services provided by the supplier. This agreement is very important, has legal effect for both parties, and serves as a benchmark for managing supplier activities.

SG2: Agreements with the suppliers are satisfied by both the project and the supplier. The Chinese idea is that the agreement signed with the supplier must meet the requirements of both the project team and the supplier.

SP 2.1: Review candidate COTS products to ensure they satisfy the specified requirements that are covered under a supplier agreement. Check candidate products or services to ensure that they meet the requirements specified in the supplier agreement. The key point of this SP is actually not inspection, but the need to write clearly the requirements for products or services in the supplier agreement, the clearer the better. To do a good job of SP 2.1, we must first do a good job of SP 1.3.

SP 2.2: Perform activities with the supplier as specified in the supplier agreement. Perform the activities specified in the supplier agreement, such as when to deliver samples, submit reports, and when to pay. From this we can see that when signing a supplier agreement, it is necessary to write down when and what the two parties need to do, and then implement it in accordance with the requirements.

SP 2.3: Ensure that the supplier agreement is satisfied before accepting the acquired product. To put it simply, before acceptance of products or services, the acceptance criteria are the requirements in the supplier agreement. From this SP we can see that the supplier agreement needs to set out clear acceptance criteria.

SP 2.4: Transition the acquired products from the supplier to the project. After the acceptance is passed, the product is transferred from the supplier to the project. Generally, there are some tasks such as signing a transfer order, transportation, and training. Generally speaking, it is relatively simple, but if there are more things to be transferred and the transportation requirements are high, it may be complicated.

The PA of SAM can be simply divided into 4 points:

1) Analyze what needs to be purchased or outsourced for the project.

2) Select the right supplier.

3) Sign an agreement with the supplier. The agreement should specify product specifications, acceptance requirements, activities of both parties, delivery requirements, etc., as detailed as possible.

4) Fulfill the supplier agreement.