Analysis of success factors in supplier development

Abstract

Purchasing departments continuously work to improve their supply chains. Rather than switching from one supplier to another as problems arise, many companies have initiated supplier development programs to improve their performance. However, only about 50% of these programs achieve the company’s expectations. A survey was conducted of North American managers to assess the various success factors in supplier development activities. Factor analysis and regression models were constructed to determine these factors and the extent of the relationship between the various factors and the success of the supplier development process.