ITIL-SOA practice question 5 of 10

A major international company owns shopping malls in many countries. They are responsible for the security, safety and comfort of shoppers visiting…

Full set: 14 questions
A major international company owns shopping malls in many countries. They are responsible for the security, safety and comfort of shoppers visiting the stores in the mall and the facilities management of the locations. The company relies on IT services provided by its IT division. The IT division consists of a corporate IT department at the company's headquarters and a local IT team at each mall. The IT division obtains IT services and products from over 100 different suppliers globally. The management of suppliers within the IT division is currently performed by the local IT teams in each country, often by the most appropriate technical manager. This has resulted in inconsistent processes and levels of service across the countries. The management team realizes that this is an ineffective use of IT resources and will have an impact on the future growth of the company. They are currently reviewing the situation and wish to develop supplier management processes that are more closely aligned to ITIL practices. The management team recently conducted a survey of all of the local IT teams within the different countries to collect details about the number and type of contracts and suppliers. The IT division has developed and implemented many other ITIL processes over the last two years, which has led to significant improvements. The management team would like to build on this success and develop and implement a supplier management process. You have recently joined the corporate IT department and have been given the results of the survey carried out by the management team. Refer to Scenario Which one of the following options is the BEST sequence of activities to adopt in order to implement a supplier management process and to bring the current situation under control?
Answer options
A: 1. Design and develop a supplier management process. 2. Define and agree a supplier policy. 3. Use the results of the survey to categorize each supplier to determine the type of relationship required. 4. Establish and populate a supplier and contract management information system (SCMIS) from the survey feedback. 5. Deploy the process in the corporate IT department as a pilot. 6. Agree which individuals in the corporate IT department and local IT teams are accountable for the management of each contract and supplier. 7. Deploy the process in the remaining countries and conduct a program of awareness and training.
B: 1. Define and agree a supplier policy. 2. Design and develop a supplier management process. 3. Use the results of the survey to categorize each supplier to determine the type of relationship required. 4. Establish and populate a SCMIS from the survey feedback. 5. Agree which individuals in the corporate IT department and local IT teams are accountable for the management of each supplier. 6. Deploy the process in all countries and conduct a program of awareness and training. 7. Identify where there are duplicate or multiple contracts in place with suppliers and instigate an initiative to review these with the relevant suppliers.
C: 1. Carry out a further review of the suppliers used by each store in each country. 2. Establish and populate the SCMIS from the results of the exercise. 3. Design and develop a supplier management process. 4. Define and agree a supplier policy. 5. Appoint a supplier manager from the corporate IT department to manage all contracts and all suppliers. 6. Deploy the process in all countries and conduct a program of awareness and training. 7. Renew all contracts to try to obtain better terms and conditions.
D: 1. Define and agree a supplier policy. 2. Agree which individuals in the corporate IT department and local IT teams are accountable for the management of each supplier. 3. Use the results of the survey to categorize each supplier to determine the type of relationship required. 4. Establish and populate a SCMIS from the survey feedback. 5. Design and develop a supplier management process. 6. Deploy the process in all countries and conduct a program of awareness and training. 7. Work with the service level manager to ensure that all contracts correctly underpin service level agreements. Correct answer
Correct Answer:
D. 1. Define and agree a supplier policy. 2. Agree which individuals in the corporate IT department and local IT teams are accountable for the management of each supplier. 3. Use the results of the survey to categorize each supplier to determine the type of relationship required. 4. Establish and populate a SCMIS from the survey feedback. 5. Design and develop a supplier management process. 6. Deploy the process in all countries and conduct a program of awareness and training. 7. Work with the service level manager to ensure that all contracts correctly underpin service level agreements.
Explanation

This sequence represents the most logical and effective approach to implementing a new supplier management process according to ITIL principles. It begins with establishing the governing strategy and policy (Step 1), which is the correct starting point for any process implementation. It then defines critical inputs for the process design: accountability (Step 2), supplier categorization (Step 3), and the supporting information system (SCMIS) (Step 4). Only after these foundational elements are in place is the process itself designed (Step 5), ensuring it is practical and fit for purpose. The final steps involve a structured deployment and crucial integration with other key processes like Service Level Management (Step 7), ensuring alignment and end-to-end value.

Why Incorrect

A. The policy must be defined before the process is designed. This option incorrectly places process design before the policy that should guide it.
B. Designing the process (step 2) before defining accountability and categorizing suppliers is less effective, as these are critical inputs required for a robust process design.
C. This option starts with a redundant review, follows an illogical sequence (policy after design), and suggests an unrealistic single point of accountability for all global suppliers.

References

1. ITIL® Service Design (2011 Edition), AXELOS.

Section 4.7.2 (Supplier management policy and strategy): This section emphasizes that the initial step is to create a supplier policy and strategy, which will "contain the rules and guidelines for the IT organization in its dealings with suppliers." This supports Step 1 in option D being the correct starting point.

Section 4.7.5.2 (Supplier categorization): This section details the importance of categorizing suppliers (e.g., strategic, tactical, operational, commodity) to determine the level of management and attention each requires. This activity logically follows the establishment of a policy, as shown in option D.

Section 4.7.5.1 (The supplier and contract management information system (SCMIS)): The SCMIS is described as the central repository for all supplier and contract data. Establishing this system is a key implementation activity that provides the foundation for managing suppliers effectively.

2. ITIL® 4: Create, Deliver and Support, AXELOS.

Section 5.2.10 (Supplier management practice): This practice guide reinforces the need for a "supplier strategy" or "sourcing strategy" that defines the organization's plan for engaging with suppliers. This strategy guides all subsequent activities, including process design and execution, which aligns with the sequence in option D where policy precedes process design. The practice also highlights the importance of defining roles and responsibilities for managing suppliers.

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