World Class Supplier Development

World Class Supplier Development

Best Practices in Supplier Development Developing the Suppliers Supply Management System

Collaboration is the Key

Twelve Generic Steps

Best Practices in Supplier Development

Create dedicated supply development teams
Teach a supplier how to develop itself after initial guidance from the supplier development team

Focus on underlying causes of long cycle times Focus on wasteful activities in all supplier efforts
Involve suppliers in new product and process development at the buying firm

Best Practices in Supplier Development

Provide training programs and training time to suppliers Provide education programs offline that go beyond training Provide improvement focused seminars for suppliers Provide tooling and technical assistance to suppliers Provide supplier support centers

Best Practices in Supplier Development

Drive fear out that a suppliers workforce may have towards supplier development programs

Set stretch goals to encourage radical change as well as continuous improvement

Improve accounting systems to enable measurement of improvements

Best Practices in Supplier Development

Share the savings from the development improvements

Encourage suppliers to contribute to improving processes at the buyers facilities

Provide a feedback loop for suppliers to help encourage supplier development efforts

Improve the suppliers supply management system

Developing the Suppliers Supply Management System

Developing the supply management capabilities of a buying firms suppliers provides an excellent opportunity to the buying firm Improving the supplying firms supply management system will reduce the suppliers cost and improve its quality, responsiveness, time to market, continuity and the inflow of technology from the suppliers suppliers

The result is significant impact on improving both firms bottom lines!

Collaboration is the Key

Collaboration Requires Commitment.

Collaboration Requires Communication

Collaboration Requires Measurement

Collaboration Requires Trust

Twelve Generic Steps

Identify and review performance gaps

Discuss specifics about how the project will be approached and implemented

Work to achieve mutual agreement on project focus

Identify processes that result in waste

Compare performance gaps with the desired state

Establish project metrics and metrics baselines

Twelve Generic Steps

Gather and analyze data

Develop improvement strategies

Develop an implementation plan

Calculate the return on investment

Create and review a proposal with the suppliers management

Execute the improvement plan