This document summarizes the results of a study on supplier development programs. It finds that while over half of suppliers participate in supplier development programs, only 41% of buyers offer them. It also examines supply chain education programs, scorecards, and alignment within organizations. Process improvement programs are the most common and important types of supply chain education for both buyers and suppliers, according to the study.

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Supplier Development
Study
Summary Charts
February 2 – May 13, 2016

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Agenda
 Study Overview
 Supplier Development
 Supply Chain Education
 Scorecards
 Alignment

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Study Overview

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Three-Quarters of Respondents Are Manufacturers

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Respondents Are Generally Evenly Split by
Discrete vs. Process Industries

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Six in Ten of Respondents Are Buyers vs.
Four in Ten Suppliers

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Agenda
 Study Overview
 Supplier Development
 Supply Chain Education
 Scorecards
 Alignment

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41% of Buyers Offer a Supplier Development
Program; 58% of Suppliers Participate in One

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15% of Suppliers Participate in Only ONE Supplier
Development Program

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Buyers Are More Likely to Have a Supplier Diversity
Program Compared to Supplier Development

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Most Buyers in the Study Are Part of the
Sourcing and Buying Organization

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Buyers Report a Great Supplier Development Program Is
Collaborative, Performance-Focused & Accountable

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Suppliers Report a Great Supplier Development Program Is
Focused on Growth, Best Practices, Support and Wholistic

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Buyers Report a Variety of Reasons for
Their Supplier Development Program

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Nearly One-Quarter of Total Buyers Report Performing
Well on Supplier Development

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Suppliers Are More Likely to Get Resistance from Buyers
Than Buyers Are to Get Internal Resistance

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Overall, Those with Supplier Development Programs
Report Most Resistance Around Legacy Relationships
and Onboarding New Suppliers

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Legacy Supplier Relationships Are Among Top
Resistance Reasons for Both Buyers and Suppliers

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Top Supplier Development Program Strengths:
Relationships and Excellence Definition

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Agenda
 Study Overview
 Supplier Development
 Supply Chain Education
 Scorecards
 Alignment

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58% of Buyers Offer Supply Chain Education
While 85% of Suppliers Participate in It

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For Both Buyers and Suppliers, Process Improvement
Is Among Most Common Supply Chain Education Program

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Process Improvement Programs Are Most Important
Supply Chain Education Programs for Buyers

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Process Improvement Programs Are Also
Most Effective Among Buyers

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Among Buyers, There Is Little Gap Between Effectiveness
and Importance of Supply Chain Education Programs

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Process Improvement Programs Are Most Important
Supply Chain Education Programs for Suppliers

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Process Improvement Programs Are Also
Most Effective Among Suppliers

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Among Suppliers, Process Improvement Programs
Have the Greatest Performance Gap

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Agenda
 Study Overview
 Supplier Development
 Supply Chain Education
 Scorecards
 Alignment

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Over Two-Thirds of Buyers Use Scorecards;
Over Half of Them Rate Scorecards As Effective

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Buyers’ Most Common Scorecard Measurements
Are Product Quality and On-Time Delivery

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Agenda
 Study Overview
 Supplier Development
 Supply Chain Education
 Scorecards
 Alignment

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For Buyers, Supply Chain Is More Aligned with Procurement
Than with Finance

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For Buyers, the Greatest Performance Gap in Alignment
Is for Procurement-Finance