The aims of SD are to reduce cost, improve quality, and improve delivery. Supplier Development includes efforts to educate suppliers in a systematic process to keep driving continuous improvement.
Definition of SD:
“Any effort of a buying firm working with its supplier(s) to increase the performance and/or capabilities of the supplier and meet the buying firm's short- and/or long-term supply needs. Moreover, promotes on-going improvements that are intended to benefit both buyer and supplier(s)”
Buying companies are realizing that supplier performance in timely delivery of quality products and services and product and process improvement are extremely important for maintaining and increasing competitive advantage.
C.K. Hahn, C.A. Watts and K.Y. Kim, “The supplier development program: a conceptual model,” International Journal of Purchasing and Materials Management, vol. 26, pp. 2-7, 1990.
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