Supplier Management- How Suppliers should be managed and developed

A short guide on how to develop your suppliers in modern times. Manage, Select, and Develop.

1. Supplier Development

2. Process for Supplier Development
•Identify Critical Commodities for Development
•Identify Critical Suppliers for Development
•Form Cross Functional Development Team
•Meet with Supplier’s Top Management Team
•Identify Opportunities and Probability for
Improvement
•Define Cost Sharing Mechanisms
•Reach Agreement on Key Projects and Joint
Resource Requirements
•Monitor Status of Projects and Modify Strategies
as Appropriate

3. Barriers
•Supplier’s reluctance to share information on
costs and/or processes
•Confidentiality agreements inhibits
information sharing
•Lack of Trust
•Organizational cultures poorly aligned
•Not enough inducements to participate in
development process
•Lack of conviction among suppliers in
development process
•Supplier lacks employee skill base,
information systems to implement solutions