Retain internal accountability and monitor vendor: Which arrangement best reflects the retailer’s governance

A third party may operate the model, but the retailer retains governance duties for its own deployment and impacts.

The question

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1. Retain internal accountability and monitor vendor performance. ✓

   The retailer remains accountable for its use while monitoring the vendor’s contribution and performance within that arrangement.
2. Review vendor reports only when forecast accuracy falls materially.

   Accuracy is relevant, but waiting for deterioration can miss broader governance, impact, escalation, and role-accountability issues.
3. Let the vendor manage all governance because it maintains the model.

   Maintenance expertise does not give the vendor control over the retailer’s ordering decisions or customer-impact responsibilities.
4. Transfer ordering authority to the vendor and document its service obligations.

   Documenting vendor obligations helps clarify responsibilities, but transferring authority does not remove the retailer’s governance duties as deployer.

How to remember it

A third party may operate the model, but the retailer retains governance duties for its own deployment and impacts.

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