Supplier development is a process by which a company collaborates with its suppliers to improve their performance and capabilities. It is a strategic and systematic approach that aims to increase the suppliers capacity and capability in areas such as cost, quality, time, and technology. Supplier development goes beyond current contractual arrangements with suppliers and can involve collaborative product development involving both customer and supplier firms.

Supplier development activities may include supplier interviews, surveys, audits, and selection criteria development. It is an important part of a companys overall supply chain management strategy and is essential for ensuring that the right suppliers are selected to deliver quality products and services.

The benefits of supplier development include increased alignment, collaboration, and trust between the customer and supplier, which can lead to better business strategies and goals. It can also help increase efficiency, innovation, and competitiveness in the supply chain.

To implement a supplier development initiative, companies can follow five easily comprehensible steps, which include identifying the right suppliers, assessing their capabilities, setting goals, developing an action plan, and monitoring progress.

In summary, supplier development is a collaborative process that aims to improve the performance and capabilities of suppliers to meet the specific needs of a company. It is a strategic and systematic approach that can lead to increased efficiency, innovation, and competitiveness in the supply chain.