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Supplier development is the process of working with certain suppliers on a one-to-one basis to improve their performance for the benefit of the buying organisation. It is closely associated with supplier relationship management and partnering.
(Chartered Institute of Procurement and Supply – CIPS)
Any effort by a buying firm with a supplier to increase the performance and/or capabilities of a supplier and to meet the buying firm’s short and/or long term supply needs.
Supplier development activities may range from limited buying firm efforts, and thus may include informal supplier evaluation and a request for improved performance, to extensive efforts that may include activities such as training of the supplier’s personnel and, perhaps, investment in the supplier’s operations.(Daniel R. Krause, Arizona State University, Tempe, 1995)