The Importance Of Supplier Development Reviews
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Supplier development strategies are long term activities undertaken jointly by both the supplier and the buying organization. The development can cover a variety of facets, from improvement activity (i.e. improving delivery performance) through to aligning product or service requirements.
Supplier development doesn’t occur with all suppliers, typically development activity will occur with suppliers that are being retained (consider the application here of your supplier evaluation system where often suppliers will fall into the categories or maintain, develop or exit). The development activity is usually tailored to meet the needs of the buyer, but it’s often a mutually supportive activity which forms part of the ongoing relationship.
The Supplier Development Review
Supplier development reviews are a key step within the supplier development process. Reviews are carried out to:
a) Review business issues / problems;
b) Ensure performance is aligned with requirements
c) Monitor ongoing projects/initiatives
d) Share information and business strategy
Meeting Targets
Any supplier development strategy will have identified key targets that need to be met and the supplier development review is an opportunity to see whether or not these are being attained.
While this may sound negative supplier development programs are designed to be constructive and in determining the route cause of the problem, collaborative improvement plans can be deployed. It should be remembered that development targets set need to be realistic, unfeasible expectations do not usually foster supportive relationships!
Identify Areas For Support
The review will also offer the chance for the supplier to highlight any way in which the customer can support them. For example, your review may indicate a poor understanding of requirement, improved demand signal, access to specification documents etc.
Remember that the review is an opportunity for both parties to indicate how they are finding the relationship and whether it can be improved.
Without a review there is no constructive element to the relationship and it is almost bound to flounder; so the review is essential to ensuring a positive, constructive and perhaps most importantly, a lasting relationship between supplier and the customer!
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[…] Any and every SDP must have “identified targets that need to be met and the supplier development review is an opportunity to see whether or not these are being attained” (supplychain-mechanic.com 2017) […]