Supplier development is a structured effort to improve a supplier's capability, capacity, quality, cost or risk performance. It focuses on gaps that matter to the buyer-supplier relationship.
When is supplier development used?
It can support new-product launch, localization, quality recovery, capacity expansion, cost improvement or compliance remediation. The expected business value should justify the effort.
Which activities are common?
- Joint process assessment
- Technical training and coaching
- Quality-system improvement
- Capacity and layout projects
- Root-cause and corrective action
- Performance reviews and milestones
Development vs. corrective action
Corrective action addresses a specific nonconformance. Supplier development can be broader and forward-looking, although corrective actions may form part of the plan.
How should the plan be governed?
Define the baseline, target, actions, owners, resources, milestones and evidence. Clarify ownership of tooling, training materials and intellectual property.
How should success be measured?
Use verified changes in defect, lead time, delivery, capacity, cost or compliance. Do not close the program based only on completed meetings or promised actions.
