supplier development - 1 & 2

Supplier development is the process of working with suppliers to improve the quality, cycle time, cost and other parameters that contribute to the overall value of the supplier-supplied product or service. 1. Supplier Identification and Selection: The first step in supplier development is to identify potential suppliers and then select the most suitable one. This is usually done through a combination of research, personal interaction and benchmarking. 2. Supplier Relationship Management: Once the supplier is identified and chosen, the next step is to establish a solid working relationship with them. This includes a process of formal communication and cooperation, which includes topics such as delivering goods and services on time, managing quality and managing cost. This process also involves setting up an effective communication channel for seamless collaboration. It is important to develop strong relationships with suppliers as it increases loyalty, trust and commitment.