Process for Implemenation of Supplier Development Strategy

Topics: Supply chain management, Supply chain, Management Pages: 8 (1632 words) Published: September 19, 2013


Table of Contents
2.There are 8 stages of implementation of supplier development3
2.1 Identify critical commodities for development3
2.2 Identify critical suppliers for development3
2.3 Form a cross-functional team3
2.4 Meet with supplier’s top management team3
2.5 Identify opportunities and probability for improvement3
2.6 Identify key projects3
2.7 Define details of the agreement3
2.8 Monitor status and modify strategies3
3. Different types Supply Chain relationships3
4.Portfolio Analysis3
4.1 Captive buyer3
4.2Captive Supplier3
4.3 Interdependent Supply Chain members3
5. Buyer /supplier relationship3


Supply chain management adopts a systematic and integrative approach to manage the operation and relationship amongst different parties in supply chain one of the major issues is supplier development studies have investigated how quality management can be employer in supply chain management to influence performance in the whole supply network. (Mishra Rik, Patel G-Supplier Development Strategies, Data employment Analysis Business Intelligence Journal, January 2010 vol 3 No.1)

There are 8 stages of implementation of supplier development

2.1 Identify critical commodities for development

Managers must analyse their situation to determine whether Supplier development is important and if so which purchased commodities and services require the most attention. A corporate level executive steering committee must assess the relevant strategic importance of all goods and services that the company buys and produce a portfolio of critical commodities

2.2 Identify critical suppliers for development

The managers must assess the performance of suppliers who supply commodities in the “strategic supplier category”. These commodities considered strategically important, as they might be difficult to substitute or purchase from alternative suppliers.

2.3 Form a cross-functional team

A buyer must first develop internal cross-functional consensus for the initiative before approaching the supplies to ask for improvement such consensus will help to show a “unified front” and ensure that all buyer functions.

2.4 Meet with supplier’s top management team

The buyer’s cross functional commodity team must approach the supplier’s top management group and establish three keys to supplier improvement, strategic alignment, supplier measurement and professionalism.

5 Identify opportunities and probability for improvement

At these meetings with the suppliers executive should identify areas earmarked for improvement. Companies adopting a strategic approach to supply base development can usually agree upon areas or improvement .In some areas driven by final customer requirements and expectations.

2.6 Identify key projects

After identifying promising opportunities of supplier development managers must evaluate them in terms of feasibility, resource and time requirements and potential return on investments. The aim is to decide what the goals should be and whether they are achievable.

2.7 Define details of the agreement

After the potential improvement project is identified, the parties need to agree on specific merthies for monitoring its success.

2.8 Monitor status and modify strategies

Manages must constantly monitor the progress and constantly exchange information to maintain momentum in the project. ( Accessed 15/09/2011)

Different types...
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