Vendor development is a program where companies motivate vendors to provide competitive prices, services, and delivery. It aims to improve raw material quality, delivery, and cost. The process involves identifying development needs, studying specifications, researching new vendors, selecting potential vendors, developing components/services, testing, finalizing terms, assessing vendors, and improving rates, delivery, and quality over time. Benefits include cost competitiveness through cheaper suppliers, more efficient supply chain management and delivery timeframes, better raw material quality, improved vendor performance, timely customer delivery, reduced inventory costs, increased profit margins, and higher company product value. Vendor development is a strategic process for competitiveness and key to achieving high standards in business.

1. Vendor development.
Vendor development is a programin which the company is motivate to develop
the vendor for the competitive price services and delivery. Companies are
promoting the core vendor as well as the new vendor for the competitiveness in
rate delivery and quality.
Vendor development is the strategic programof the company to improvethe row
material quality delivery and cost.
Process of Vendor development.
Benefit of Vendor development.
1. Cost competitiveness: Thecompetition for the products in the existing as
well as the new supplier is help to get the competitive cheap rate and it
enables the opportunity of the company to choosethe cheaper and
efficient supplier fromthe
1
•IDENTIFY THE DEVELOPMENT NEEDFOR COPONENT OR SERVICES.
2
•STUDY THE TECHNICAL SPECIFICATION, DRAWING, COMPETATOR, EXISTINGRATE, EXISTING PERFORMANCE.
2
•MARKET RESURCH FOR THE NEW VENDOR.
4
•IDENTIFY THE POTENTIAL VENDORCONSIDERING THE COMPARITIVE FACILITY OF THE EXISTINGVENDOR.
5
•DEVEOPTHE THE COMPONET/SERVICES.
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•SAMPLE TESTING AND COST COMPARISONAND FINALISATION OF TERMS AND CONDITIONS.
7
•VENDOR ASSESMENT.
8
•PURCHASE ORDER.
9
•PROCESS/PRODUCT IMPROVEMENT IN RATE DELIVERY AND QUALITY.

2. 2. Delivery/Supply chainmanagement: The supply chain management is
more efficient and the delivery of the component is within the timeframe.
3. Quality of row /Job work Material: Thequality of the productis
comparatively better.
4. Vendor performance: The performanceof the new as well the existing
vendor is comparatively better due to vendor development.
Benefit/ Impact on the business
1. Itis very helpful to provide the timely delivery to the customer.
2. Due to competitive vendors the costof the inventory is reduce also, the
number of vendors areincrease so they are partially accepting the load of
our inventory to storeour row material at the vendor inventory to compete
the competition in the vendor.
3. Itwill reduceour costof purchasethat will enable us to become the
competitive in the market.
4. Itwill increaseour profitmargin at our final product.
5. The value of the company productwill increase.
Importance: The vendor development is the most strategic process to achieve the
comparativeness in the market also, it is most neglecting partfor the most of the
industries. The vendor development is the key process to achieve high standards
in the business.