What does Supplier Agreement Management (SAM) involve?

Supplier Agreement Management (SAM) is fundamentally about establishing and managing supplier agreements. This involves several critical activities, such as defining the terms of the relationship between the organization and its suppliers, ensuring that suppliers understand the expectations concerning quality, performance, and delivery of products or services. Effective SAM ensures alignment between the supplier's capabilities and the organization's needs, which can ultimately influence product quality, cost management, and timely delivery.

By focusing on establishing clear agreements, organizations can manage risks associated with outsourcing and procurement effectively. Moreover, ongoing management of these agreements is crucial for maintaining strong supplier relationships, ensuring compliance with terms, and facilitating performance reviews. This proactive approach not only helps to mitigate potential issues but also fosters collaboration and innovation through better communication with suppliers.

The other options represent different aspects of management practices that do not directly align with the core objectives of SAM. Evaluating customer satisfaction relates to customer relationship management, designing service delivery frameworks focuses on internal processes, and forecasting resource requirements pertains to project management, all of which are essential but distinct from the specific focus of Supplier Agreement Management.