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