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ITIL4F ITIL Management Practices Practice Question

Which THREE actions are part of Supplier Management?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Managing supplier contracts

Supplier management includes evaluating and selecting suppliers, managing contracts, and monitoring performance. Options C, D, and E are core activities. Option A (setting SLA targets for internal teams) belongs to Service Level Management, not Supplier Management. Option B (providing training to supplier staff) is not a typical supplier management activity; training is usually the supplier's own responsibility.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Setting SLA targets for internal teams

    Why it's wrong here

    Setting Service Level Agreement (SLA) targets for internal teams is a core activity of the Service Level Management practice. This practice focuses on defining, documenting, and managing service levels for services delivered to customers, often involving internal operational groups. Supplier management, conversely, concentrates on external third-party providers and their contractual obligations, not the performance metrics of an organization's own departments.

  • Providing training to supplier staff

    Why it's wrong here

    Providing direct operational training to a supplier's staff is generally not a primary function of the Supplier Management practice. While an organization might provide specific product or system training necessary for the supplier to fulfill their contractual obligations, the broader responsibility for staff development and general training rests with the supplier themselves. Supplier management focuses more on contract adherence, performance, and relationship governance rather than internal skill development within the supplier's organization.

  • Managing supplier contracts

    Why this is correct

    Managing supplier contracts is a fundamental and integral activity within the Supplier Management practice. This involves the entire lifecycle of contracts, from negotiation and establishment to ongoing administration, amendment, and eventual termination. Effective contract management ensures that terms, conditions, and service expectations are clearly defined, legally binding, and consistently met by external providers, safeguarding the organization's interests and service delivery.

  • Monitoring supplier performance

    Why this is correct

    Monitoring supplier performance is a critical component of the Supplier Management practice, ensuring that external providers consistently meet their agreed-upon service levels and contractual obligations. This involves tracking key performance indicators (KPIs), conducting regular reviews, and assessing adherence to quality standards and delivery schedules. Proactive performance monitoring allows organizations to identify issues early, initiate corrective actions, and ensure value for money from their external partnerships.

  • Evaluating and selecting suppliers

    Why this is correct

    Evaluating and selecting suppliers is a foundational activity within the Supplier Management practice, occurring at the initial stages of engaging with external providers. This process involves assessing potential suppliers based on criteria such as capabilities, financial stability, reputation, security practices, and alignment with organizational needs. A rigorous evaluation and selection process ensures that the organization partners with competent and reliable suppliers capable of delivering required services and products effectively.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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