Based on the business and IT strategy and model, guidelines and a framework for Supplier Management have to be developed. The tasks in this activity include:

• Understanding the sourcing strategy and legal and self-imposed regulations with regard to suppliers
• Defining the strategy of supplier relationships: should they be long-term or will the business rely on ad hoc supplier selection
• Defining evaluation criteria for suppliers, supplier relationships and performance
• Defining and implementing practices and systems that support supplier management, including procurement and the maintenance of respective catalogs
• Determining skill requirements for the staff and assigning staff based on these systems

Finally, the structure and process of the supplier management including procurement have to be communicated to the process users.

The establishment of the Supplier Management Framework also includes the continuous improvement of supplier management. For example, the consideration of the Supplier Management process evaluation and the implementation of recommended improvement actions.