decline profit. Obviously most firms are operating in exceedingly turbulent environment
with pioneering and first mover advantage diminishing at an amazing velocity.
Consumers are increasingly becoming impatient and are demanding soaring quality
products. Coupled with this, there is less strategy to support supplier development in
most firms. The evidence being that, there are no formal partnership in place for lots of
firms and virtually all key items are dual sourced for supply security; and in most cases
suppliers meetings only occur when there is a failure and technical staff of most firms
have virtually no confidence for suppliers in opening up with technological thoughts, non
existence policy and contract, The inevitable of this is significant high cost, not meeting
customers’ priorities and becoming market follower.
In view of this, a way has now been unlocked using outsourcing; collaboration among
subcontractors could improve firm’s efficiency levels and inject competitiveness in
commodity’s prices. Nonetheless, to attain entrepreneurial collaboration effectively,
dealers and subcontractors need to tackle definite concerns relative to their business
segment, unique turf and operational performance. Differentiating amid “supplier” and
“subcontractor” is imperative. With the earlier being the source of goods/services at
marketplace to a widespread customers in huge amount, and the second a provider of
customized goods /services usually not obtainable at marketplace to solitary client in
miniature volumes. Regarding to the concept under discussions, the issues wrap
suppliers as well as subcontractors; the two vocabularies are arbitrarily applied. [...]
Table of Contents
- Chapter 1: Foreword
- Chapter 2: Supplier Development Process
- Chapter 3: Benefits of Development Supplier
- Chapter 4: Supplier Development Challenges
- Chapter 5: Solution To The Challenges
- Chapter 6: Details of Supplier Development
- 6.1: Requirement of Supplier Development
- Chapter 7: Conclusion
Objectives and Key Themes
The objective of this paper is to provide a supplier development framework for firms, focusing on effective supply chain management. It aims to identify how supplier development relationships can be improved and evaluated, assess firms' sourcing policy options, detail the elements of supplier development, enhance commercial arrangements with suppliers, and address the challenges and propose solutions for supplier development. The ultimate goal is to achieve quantifiable and tangible results for firms.
- Supplier Development Process and Implementation
- Benefits and Challenges of Supplier Development
- Strategies for Overcoming Supplier Development Challenges
- Optimizing Supply Chain Performance through Supplier Development
- The Role of Strategic Sourcing in Supplier Development
Chapter Summaries
Chapter 1: Foreword: This chapter introduces the context of fierce market competition and declining profits faced by firms. It highlights the increasing demands for high-quality products from consumers and the lack of strategic supplier development in many organizations. The chapter emphasizes the need for collaboration and outsourcing to improve efficiency and competitiveness, differentiating between suppliers and subcontractors. It sets the stage by outlining the paper's aim to offer a supplier development framework, explore methods for improving and evaluating supplier relationships, assess sourcing policy options, and address challenges and solutions in supplier development to achieve tangible results for businesses. The concept of supplier development as a means to strengthen subcontracting businesses, improve client satisfaction, and reduce costs is introduced, presenting the choice between outsourcing, in-house production, or supplier development based on cost, volume, and product type considerations.
Chapter 2: Supplier Development Process: This chapter defines supplier development as an intensive collaborative process between a company and its supplier, involving various improvement projects such as teaching lean principles, redesigning work stations, and establishing problem-solving groups. It highlights the need for a commitment of resources, information sharing, and performance evaluation. The chapter discusses the importance of demonstrating mutual benefit to both parties involved. It emphasizes the crucial role of supplier development in creating a well-integrated supply chain, especially considering the significant proportion of expenditure on procured inputs. The chapter analyzes the impact of supplier performance on a buyer's bottom line and suggests strategies for sustainable improvement, such as identifying wealth-creation opportunities within the supply chain. Finally, it introduces a process chart illustrating the steps involved in supplier development, highlighting the gap between identifying suppliers needing improvement and successfully implementing improvements.
Chapter 3: Benefits of Development Supplier: [Note: Since the provided text does not contain Chapter 3, a summary cannot be provided.]
Chapter 4: Supplier Development Challenges: [Note: Since the provided text does not contain Chapter 4, a summary cannot be provided.]
Chapter 5: Solution To The Challenges: [Note: Since the provided text does not contain Chapter 5, a summary cannot be provided.]
Chapter 6: Details of Supplier Development: This chapter delves into the specific requirements of supplier development, building upon the framework established in previous chapters. While the provided excerpt only includes the introduction to this chapter and subchapter 6.1 (Requirement of Supplier Development), it can be inferred that this section would elaborate on practical steps, processes, and considerations for effective supplier development initiatives. It likely includes detailed examples and methodologies for identifying key products, selecting main suppliers, and establishing collaborative efforts for development.
Keywords
Supplier development, supply chain management, outsourcing, strategic sourcing, supplier relationships, performance improvement, competitiveness, cost reduction, collaboration, lean principles, procurement.
Frequently Asked Questions: A Supplier Development Framework for Firms
What is the overall objective of this document?
This document aims to provide a comprehensive framework for supplier development within firms, focusing on effective supply chain management. It seeks to improve and evaluate supplier development relationships, assess sourcing policy options, detail the elements of supplier development, enhance commercial arrangements, and address the challenges and solutions involved, ultimately aiming for quantifiable and tangible results for businesses.
What key themes are explored in this document?
The key themes include the supplier development process and implementation, the benefits and challenges of supplier development, strategies for overcoming these challenges, optimizing supply chain performance through supplier development, and the role of strategic sourcing in supplier development.
What are the main chapters and their respective focuses?
The document includes chapters on a Foreword setting the context, a Supplier Development Process chapter defining the process and highlighting its importance, a chapter on the Benefits of Supplier Development (content not provided in the excerpt), a chapter detailing the Challenges of Supplier Development (content not provided in the excerpt), a chapter presenting Solutions to the Challenges (content not provided in the excerpt), a chapter detailing the specifics of Supplier Development, focusing on requirements, and finally a Conclusion (not detailed in the excerpt).
What is the Supplier Development Process described in the document?
The Supplier Development Process is described as an intensive collaborative effort between a company and its suppliers, involving improvement projects like implementing lean principles, redesigning workstations, and establishing problem-solving groups. It requires resource commitment, information sharing, performance evaluation, and a demonstration of mutual benefit. The process aims to create a well-integrated supply chain, focusing on improving supplier performance to positively impact the buyer's bottom line.
What are the key benefits of Supplier Development as highlighted (or inferred) from the provided text?
While a dedicated chapter on benefits is missing from the provided text, the introduction and chapter summaries imply benefits such as improved efficiency, increased competitiveness, stronger subcontracting businesses, higher client satisfaction, cost reduction, and the creation of wealth-creation opportunities within the supply chain.
What are some of the challenges associated with Supplier Development mentioned (or inferred) in the document?
Although specific challenges are not detailed in the excerpt, the text implies the existence of challenges given the inclusion of a dedicated chapter on this topic. These challenges likely involve implementation difficulties, resistance to change, resource allocation issues, and the gap between identifying the need for improvement and actually implementing improvements.
What solutions to the challenges of supplier development are discussed (or implied) in the document?
The provided text excerpt does not contain Chapter 5, which deals with solutions. Therefore, no specific solutions can be detailed.
What are the key requirements of Supplier Development according to the document?
The provided excerpt only introduces this topic. It is inferred that a detailed explanation of the requirements would cover practical steps, processes, and considerations for effective supplier development initiatives, likely including detailed examples and methodologies for identifying key products, selecting main suppliers, and establishing collaborative efforts for development.
What are the keywords associated with this document?
The keywords include: Supplier development, supply chain management, outsourcing, strategic sourcing, supplier relationships, performance improvement, competitiveness, cost reduction, collaboration, lean principles, and procurement.
- Quote paper
- Emmanuel Tete Darko (Author), 2012, Global Supply Chain Management: Supplier Development Process, Munich, GRIN Verlag, https://www.grin.com/document/198782
