Vendor development can provide several benefits to a company's supply chain, including improved knowledge sharing, increased responsiveness, and reduced inventory and time to market costs. Effective vendor development involves clearly communicating expectations, establishing realistic deadlines and KPIs, collaborating with vendors, and assessing risks. The vendor development process includes identifying critical commodities, forming an internal team, meeting with vendor management, identifying opportunities, evaluating feasibility, and monitoring progress. Continuous evaluation is important for effective vendor development.

1. HLDC 2020
VENDOR DEVELOPMENT PROCESS
IN SUPPLY CHAIN

3. Benefits of Vendor development
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Improved knowledge and collaboration sharing throughout the extended
enterprise.
Increased responsiveness to customer needs and market dynamics.
Establishing and manufacturing of new designs, improved quality and reliability of
products will be achieved.
Inventory costs can be reduced between 25-50 percent.
Time for sourcing of information is reduced by 25-30 percent
Time to market a company’s products is reduced by up to 20 percent.

4. Best Management stratgies
Convey your expectations clearly
Ensure you set deadlines which are achievable and
realistic
Collaborate with your vendors to maintain lonterm
relationship
Establish KPI's to measure Vendor performance
Assess Vendor risk to enavle its minimization

5. HOW TO DO VENDOR DEVELOPMENT
Step # 1. Identify critical commodities for development:
Step # 2. Identify Vendors for Critical Commodity
Step # 3. Formation of Internal Team
Step # 4. Meeting with Top Management of Vendor
Step # 5. Identify Opportunities for development
Step # 6. Define feasibility and Viability
Step # 7. Joint Agreement of Project
Step # 8. Monitoring progress of Project
Step # 9. Follow up and modification

7. Let's see which factors needs improvement
Delivery on schedule.
Low costs or competitive pricing.
Quality that meets or exceeds specifications.
Prompt service.
Flexible terms and conditions.
Dependability; always performs as promised.
Maintains a stable and profitable business.
Innovative; offers valuable ideas.
Cooperative and reasonable with requests.
Trustworthy; keeps buyer information confidential.

8. Continuous evaluation
Faster product development
Managing and mitigating supply risks
Increased supplier engagement
Manage quality initiatives
In Nutshell to develop Vendor effectively one should do-