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DS2.4 - Supplier Performance Monitoring

This topic is intended to enable collaboration and sharing of information to facilitate a better understanding and approach to implementing this COBIT control objective based on the risk, value and guidance provided by its corresponding control practices.

COBIT Control Objective DS2.4 - Supplier Performance Monitoring is contained within Process Popup Manage Third-party Services.

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Supplier Performance Monitoring

Establish a process to monitor service delivery to ensure that the supplier is meeting current business requirements and continuing to adhere to the contract agreements and SLAs, and that performance is competitive with alternative suppliers and market conditions.

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Value Drivers

  • Timely detection of service level non-compliance
  • Benefits of service contract realised
  • Costs controlled
  • Costly disputes and possible litigation avoided
  Risk Drivers
  • Undetected service degradation
  • Inability to challenge costs and service quality
  • Inability to optimise choice of suppliers

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  1. Define and document criteria to monitor service suppliers’ performance.
  2. Ensure that the supplier regularly reports on agreed-upon performance criteria.
  3. Invite users to provide feedback for assessment of supplier performance and quality of service.
  4. Evaluate the costs and market conditions for the service levels by benchmarking against alternative suppliers, and identify potential for improvement.
  5. Define arbitration procedures to consult an arbitration committee before bringing an action.

 

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Journal Articles: 160 total

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