Supplier development: Practices and measurement

Supplier development has been a critical supply management practice since the 1990s. In many instances, it has even become imperative for buyer firms to support and prepare their supply bases for uncertain economic and market environments, socially and environmentally conscious customers, advances in digital technologies, and increasing competition. Yet, research that approaches supplier development with the objective to advance all these dimensions in an integrated fashion is scarce. This study fills this void by exploring how a buyer firm may address these emerging challenges in its supply base. Specifically, an in-depth case study of LG Electronics explores how the firm designs and operates multidimensional supplier development activities to foster the stability and sustainability of its supply base while enhancing its core suppliers’ competitive capabilities. This chapter illustrates how supplier development can be taken to the next level, presents implications for managerial practice, and outlines promising future research avenues.

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How do institutionalized supplier development initiatives affect knowledge transfer and operational performance? Evidence from SME construction companies in Zambia

African Journal of Science Technology Innovation and Development ◽

10.1080/20421338.2021.1889757 ◽

2021 ◽

pp. 1-14

Author(s):

Shem Sikombe ◽

Maxwell Phiri

Keyword(s):

Knowledge Transfer ◽

Operational Performance ◽

Supplier Development ◽

Construction Companies ◽

Development Initiatives

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Environmental supply-line engineering: Eco-supplier development coupled to eco-design-A new approach

Bell Labs Technical Journal ◽

10.1002/bltj.2108 ◽

2002 ◽

Vol 3 (2) ◽

pp. 109-123 ◽

Cited By ~ 4

Author(s):

Menno H. Nagel

Keyword(s):

Supplier Development ◽

New Approach ◽

Supply Line ◽

Line Engineering

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To examine the relationships between supplier development practices and supplier-buyer relationship practices from the supplier’s perspective

Benchmarking An International Journal ◽

10.1108/bij-01-2016-0006 ◽

2017 ◽

Vol 24 (5) ◽

pp. 1309-1336 ◽

Cited By ~ 5

Author(s):

Sarang Joshi ◽

Manoj Kharat ◽

Rakesh Raut ◽

Sachin Kamble ◽

Sheetal Kamble

Keyword(s):

Structural Equation ◽

Success Factors ◽

Structural Model ◽

Manufacturing Firms ◽

Supplier Development ◽

Competitive Advantages ◽

Content Type ◽

The Relationship ◽

Relationship Improvement

Purpose The purpose of this paper is to examine the relationships between supplier development practices (SDPs) and supplier-buyer relationship practices from the supplier’s perspective (SBRSP), and seek to understand how specific SDPs may impact a buyer’s operational performance as well as supplier-buyer relationship practices. Design/methodology/approach The authors conducted a survey of 512 respondents from the different manufacturing firms in India and applied structural equation modelling to test a structural model that proposes the impacts of various efforts of SDPs on a buyer’s performance as well as SBRSP. Findings The study concludes that SDPs and SBRSP together improve the relationship between a buyer and supplier, and this improved relationship leads to competitive advantages (CAs) followed by profitability. Results indicate that supplier perspective of buyer-supplier relationship can be improved under the condition of SDPs and SBRSP together. SDPs are driven by productive measure and competitive pressure, whereas customer uncertainty is found to be statistically insignificant. Research limitations/implications The study was carried out in North Maharashtra Industrial Zone of India, where the auto sector and machine/components manufacturing firms have been established for a considerable period of time. Results of the study are limited to manufacturing organizations predominantly focussing on the automobile sector and machine/components manufacturing firms. Practical implications This study provides significant insights into the specific impact of various SDPs and SBRSP for both academics and practitioners. SDPs along with SBRSP practices lead to improvement in the relationship leading to CAs. SBRSP suggests that trust, long-term commitments and the supplier’s perspective are important practices for relationship improvement. Originality/value The current study attempts to identify what are the success factors for the supplier-buyer relationship from the supplier’s perspective and SDPs and how the supplier-buyer relationship can be improved under the condition of SDPs and SBRSP. Hence, the aim is to develop a more thorough understanding of the outcomes of a supplier-buyer relationship improvement from both buyer’s and supplier’s perspective, under the conditions of supplier development to achieve CAs leading to profitability. Furthermore, the study analyses the effect of the improved supplier-buyer relationship for achieving CAs leading to profitability.

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