Question

Why must organizations develop suppliers? Is supplier development a long-term trend or just a fad? Explain?

Answer 1

Supplier development (reverse marketing) refers to a degree of aggressive procurement not normally encountered in supplier selection and can include a purchaser initiating contact with a supplier, as well as a purchaser establishing prices, terms, and conditions. One reason for its growing prominence is the myriad inefficiencies associated with suppliers initiating marketing efforts towards purchasers. A second reason is that the purchaser may be aware of important events that are unknown to the supplier. Moreover, achieving competitive advantage in the supply chain is predicated on purchasers adopting a more aggressive approach so as to compel suppliers to meet the necessary requirements

Answer 2

${\huge {\mathfrak {Answer :-}}}$

➡️ Below are eight advantages to implementing and executing a well-designed supplier development program, ultimately leading to better overall supplier relationships:

1) Full transparency between organization and supplier

2) Improved collaboration between organization and supplier

3) Streamlined and reduced sourcing activities and lead times

4) Improved quality, manufacturability, and reliability for new designs

5) Increased supplier responsiveness

6) Increased customer satisfaction

7) Increased awareness of supplier diversity.

8) Increased visibility of full supply base to procurement, quality, and even management departments.

$<b>$ REGARDS, ARNAB ✌️

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