Supplier development and buyer-supplier relationship strategies - a literature review

Abstract

Academic and corporate interest in supplier development and buyer-supplier relationship has increased substantially in recent years. This paper provides a framework for analyzing the current understanding of supplier development strategies, its impact on performance, and buyer-supplier relationship approaches. There is an increased need for buyers and suppliers to strategically collaborate to build a stronger and long-term relationship. The goal is to get extended understanding in buyer-supplier relationship and supplier development strategies. Supplier development is a process of understanding including four steps 1) supplier assessment, 2) competitive pressure, 3) supplier incentives, and 4) direct involvement. Future research can be more empirical focused including multiple case study in global environment to validate the supplier development strategy approaches and help the organization to develop their supplier's strategies. The presented literature review offers supplier development strategies for empirical case studies and a systematic way to build buyer-supplier relationships to improve the performance.

Benchmarking Supplier Development: An Empirical Case Study of Validating a Framework to Improve Buyer-Supplier Relationship

“…These approaches include; supplier assessment, competitive pressure, supplier incentives, and direct involvement. This process of supplier development was discussed and tested by [20] and [4] in their articles but later on, [3] developed a conceptual framework for supplier development and improved buyer supplier relationships.…”

“…Reference [3] highlighted an evolutionary supplier development route which leads towards improved relationship performance. Supplier development framework was developed based on a detailed literature review on supplier development and buyersupplier relationship which provides the successful strategies not only to develop suppliers but to improve long term relationships with suppliers [3].…”

“…Supplier development framework was developed based on a detailed literature review on supplier development and buyersupplier relationship which provides the successful strategies not only to develop suppliers but to improve long term relationships with suppliers [3]. It identified four main steps lead toward supplier development; 1) supplier assessment, 2) competitive pressure, 3) supplier incentives, and 4) direct involvement.…”

“…Reference [2] argues that different supplier development efforts exist but they fluctuate based on the firm's commitment and dedication towards supplier development. Similarly, the increased interest in supplier development and buyer-supplier re-lationship result in highlighting the importance of strategic collaboration of buyers and suppliers to enhance the operational performance and to build-up stronger and long-term relationships [3]. Suppliers are the most important capability and critical input resource for firms to produce a significant product or service and that is the reason now firms are implementing supplier development programs.…”

“…This research addresses this research gap by implementing and validating a developed integrated research framework through a case study. Reference [3] proposes an integrated research framework based on detailed theoretical literature review, and this study is a step forward to implement and validate the research framework in a case study. This study compliments their research and provides the empirical evidence of step by step supplier development strategies, approaches and their strategic impact on business relationships.…”