Supplier Development Definition

Supplier development is the proactive process of improving the long-term capabilities of suppliers to consistently meet the needs of the customer. The goal of supplier development is to improve supplier performance in terms of quality, cost, delivery, and innovation.

There are many different approaches that can be taken to supplier development, but all share a common goal: to help suppliers become more capable and efficient partners in the business relationship. Many companies have formal supplier development programs in place, which may include activities such as training, process improvement assistance, financial incentives, and joint planning.

While supplier development is often seen as a role for procurement or supply chain management teams, it is important to remember that developing strong relationships with suppliers is a company-wide effort. Every team that works with suppliers has a role to play in supplier development. By taking a proactive approach to supplier development, companies can build a network of reliable and high-performing suppliers that will help them achieve their business goals.