Vendor

Development

Prepared By :
Nirja Kohle
Nirav Kapadiya
Prabodh Jadhav
Yaseer Kagdi
Best Practices in Vendor
Development
Creating dedicated supply developments teams

Focus on underline causes of long cycle times

Involving supplier in new product and process

development

Providing on line training programs and offline

education programs to suppliers

Conducting frequent improvement focus seminars for

suppliers

Creating supplier support centres at their location itself

Improving the suppliers supply chain system

Challenges and Barriers to Vendor
Development
Challenges and Barriers

Lack of capacity of local Lack of capacity of local

SMEs SME suppliers, resulting
Developing the right from:
SMEs
Lack of Business Expertise
Information Gap Lack of Technical Expertise

Tendering Process Lack of funding access

complexity
Lack of engagement
Lack of necessary labour
and contact of local
businesses
Lack of efficiencies of scale
Stringent on site
requirements in terms
Lack of other customers
of health and safety etc.
Vendor Development: a holistic, best practices approach

Critical Success Factors

Selecting the right SMEs to develop
Establishment of clear goals and outcomes
Buy-in from top management
Excellent governance and internal communication structures
Measurement and evaluation
Collaboration across range of partners
Vendor Development Activities

Basic Vendor Moderate Vendor Advance Vendor

Development Development Development
Evaluation of Awarding and Involvement of
suppliers approval of suppliers suppliers in buyers
performance and performance new product
feedback to suppliers improvements development process
Sourcing from limited Visiting suppliers Training to suppliers
number of suppliers plant Intensive information
Parts standardization Collaboration with exchange with
Supplier qualification supplier in materials suppliers
improvement
Supplier certification