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Sourcing & Suppliers

Supplier Development

Supplier development is the effort a buyer makes to help a supplier improve its capability, quality or performance rather than simply replacing it.

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When a capable supplier falls short on quality, capacity or delivery, development invests in fixing the gap — sharing forecasts, providing training, joint problem-solving or process improvements. It suits strategic relationships where switching would be costly or where a supplier offers unique value.

Supplier development is a hallmark of mature supplier relationship management: it treats the supply base as an asset to grow, not just a market to shop in. The payoff is better long-term quality, reliability and cost, and a supplier more invested in the buyer's success.

Frequently asked questions

What is supplier development?
Supplier development is the effort a buyer makes to help a supplier improve its capability, quality or performance — through training, shared forecasts or joint problem-solving — instead of replacing it.
When is supplier development worthwhile?
It is most worthwhile with strategic or hard-to-replace suppliers, where the cost and risk of switching outweigh the investment needed to raise the existing supplier's performance.

Go deeper

Supplier management guide

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