Governance (as related to buyer-supplier relationships)
The management of cohesive policies, processes, and decision rights that enable parties to work together effectively manage a spend category. In short, governance involves the development of processes that bring together the appropriate people, processes and technology to keep your sourcing solution running as a well-run system. The Governance Academy suggests that good governance includes five key functions that serve to manage a virtual of key stakeholders that are involved directly or indirectly in executing the sourcing solution. These functions are contract compliance, financial management, managing issues and risks, managing performance, and managing relationships.