Trends Report

Tiers Are Not Enough

One Software Supplier Classification System Is Insufficient To Drive Both Sourcing Strategy And Operational Monitoring

March 27th, 2012
Duncan Jones, null
Duncan Jones
With contributors:
Christopher Andrews , Kelsey Stone

Summary

Inadequate tiering of your software suppliers can cause you many problems: It can make it harder to know where to focus your vendor management resources and difficult to differentiate between suppliers you want to use more frequently and those you want to restrict to their current footprint, or even replace entirely. This report describes best practices for classifying suppliers into tiers that drive your sourcing strategy and that can also help you focus your operational vendor monitoring. It also explains how these objectives are very different, and hence why one tiering model is insufficient to meet both goals.

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