Supplier Development: Current Practices and Outcomes

Abstract

This article presents the results of a survey on supplier development. The research indicates that buying firms engage in a variety of supplier development activities. The outcomes and benefits from supplier development, which are determined from a range of measures, e.g., measures of incoming defects, on‐time deliveries, and perceptions of the buyer‐supplier relationship, are reported. Respondents were generally positive about the outcomes of their supplier development efforts, but their perceptions could have been more favorable. The research also suggests that supplier development activities vary in terms of the level of buying firm commitment to the supplier development effort.