Supplier development involves taking those initiatives necessary to change the performance of supplier firms. This paper develops a conceptual model that captures the salient issues from an internal or purchaser's standpoint, as well as from an external or seller's standpoint. The model assists purchasers in pinpointing improvement initiatives that provide the best returns. Moreover, it illustrates that different purchasing firms perceive supplier value differently because of the relative amount of competition in a respective supply market and because of the value offered by various products within the purchasing firm's business. Case studies were conducted to highlight methods of strategically enhancing the supplier/ customer relationship to develop exemplary supply chains. Results indicated ineffective measurement criteria as a key impediment to supplier development. Additionally, results indicated that many purchasers are in transition regarding embracing bold and substantive supplier development initiatives.
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