Which factor should NOT be considered by the Supplier Manager in the decision making process?

An organization is considering outsourcing its data center. The Supplier Manager is analyzing the

potential external service providers.

Which factor should NOT be considered by the Supplier Manager in the decision making process?
A . Geographic presence
B . Patents filed year to date
C . Financial situation
D . Size of the organization

View Answer

Answer: B

Explanation:

In the context of ITIL 4 and supplier management, certain factors are critical when evaluating and selecting external service providers. These factors generally include the provider’s geographic presence, financial situation, and size of the organization, all of which directly impact the ability of the provider to meet the organization’s needs and maintain reliable service delivery.

Geographic Presence:

This factor is important because the location of a supplier can affect service delivery, especially in terms of logistics, compliance with local laws, and the ability to provide on-site support if necessary. Analyzing geographic presence helps ensure that the supplier can effectively meet regional service requirements.

Reference: ITIL 4 emphasizes the importance of aligning supplier strategies with the geographic and regulatory needs of the organization (Drive Stakeholder Value, Section 5).

Financial Situation:

The financial health of a supplier is critical for assessing long-term viability and reliability. A supplier with a strong financial background is less likely to face operational disruptions that could affect service quality.

Reference: ITIL 4 highlights that understanding a supplier’s financial stability is crucial for assessing risk and ensuring that the supplier can sustain service levels (Drive Stakeholder Value, Section 5.3.4). Size of the Organization:

The size of a supplier can influence their ability to scale services, manage large contracts, and invest in innovation. Larger suppliers may offer more robust resources, but smaller suppliers might provide more specialized and flexible services.

Reference: ITIL 4 considers the size of a supplier as a factor in determining their capacity to meet current and future needs, ensuring they align with the organization’s requirements (Drive Stakeholder Value, Section 5.3.5).

Patents Filed Year to Date:

This factor, while potentially interesting in a general business context, is not relevant to the decision-making process in supplier management as per ITIL 4 guidelines. The number of patents a supplier has filed does not directly influence their capability to deliver the required services or meet the organization’s specific needs.

Reference: ITIL 4 does not consider patents filed as a relevant criterion in supplier selection or evaluation processes.