Supplier development practices and their challenges: a roadmap proposal / Práticas de desenvolvimento de fornecedores e seus desafios: proposta de um roadmap

Abstract

Original Equipment Manufacturers (OEMs), when focusing on their core business, outsource non-essential processes to their supplier base, a strategy that makes them dependent on their suppliers’ performance. The purpose of this paper is to propose a practical roadmap based on the post-relevant supplier development practices, barriers to be avoided by the managers, and critical success factors identified by the literature reviewed and in five Brazilian companies in the automotive segment. Although supplier development (SD) is widely acknowledged, there is no roadmap to guide the organizational managers when applying it. The roadmap aims to direct managers' activities when developing their suppliers to obtain better results. The method used was a qualitative research and its strategy was a multiple case study with an exploratory character. Data collection was obtained through a semi-structured interview. The research identified 17 relevant practices of supplier development. These practices of supplier development identified by the literature reviewed, coupled with the manager's speech, have enabled the researcher to figure out an empirical roadmap to assist organizational managers in planning and conducting development actions on their supplier base in a structured manner. The results obtained by the managers' speech indicated that OEMs want creative and innovative solutions from their suppliers to be applied to the new generations of their vehicles, far beyond the products or services usually delivered until now. Another important result for the successful supplier development was the top team’s commitment to implement the changes resulting from development practices combined with a preventive rather than corrective posture.