Vendor Development

Vendor development is the process of working with suppliers to improve their capabilities and performance to meet the specific requirements of an organization. The objective of vendor development is to build a long-term relationship with the supplier and improve the quality of products and services, reduce costs, and improve delivery schedules.

The vendor development process typically involves the following steps:

Identify areas for improvement: The organization should identify areas where the supplier needs to improve, such as quality, delivery, cost, or technical capabilities.

Develop a plan: The organization should develop a plan to help the supplier improve in the identified areas. The plan may include training, process improvement, or technology transfer.

Implement the plan: The organization should work with the supplier to implement the plan and monitor their progress. This may involve providing technical assistance or training to the supplier.

Evaluate the results: The organization should evaluate the results of the vendor development program to determine if the supplier has improved their performance as expected.

Review the relationship: Based on the results of the vendor development program, the organization should review the relationship with the supplier and determine if they are still the best supplier for the organization.

The benefits of vendor development include improved supplier performance, reduced risk, increased cost savings, and better quality of products and services. By working with suppliers to improve their capabilities and performance, organizations can build a long-term relationship with them and achieve mutual benefits. Vendor development can also help organizations reduce their dependence on a single supplier and diversify their supplier base, which can reduce the risk of supply chain disruptions.