Organizations that embark on Supplier Development programs do not always have the luxury of starting with a new set of prospective suppliers. They almost always have to look at existing supply base to design Supplier Development programs based on Supplier category, supplier type, maturity level, and relationship status of existing suppliers.
Supplier Base and the development needs can be evaluated flexibly based on the following facets
A more detailed view of supplier development facets can be seen below
The goal of Supplier Development program is help get as many suppliers as possible to follow the development path and become preferred suppliers
Supplier development related activities can happen throughout the Supplier development lifecycle and are designed based on assessment (initial and periodic) and supplier performance monitoring as shown below
Supplier Maturity Level
Supplier Maturity level provides a measure of how well a supplier can perform when providing required products and services. Supplier maturity level is determined based on initial evaluation of the supplier and on periodic assessment of supplier performance. A periodic assessment of an active supplier provides an opportunity to see if supplier development activities are having an impact of supplier maturity.
Supplier Relationship Status
Supplier Relationship Status indicates the level of relationship that the Supplier has attained. These statuses determine the type of sourcing agreements and the level of engagement as part of the Supplier Development program. In practice, many inputs go into determining Supplier relationship status and the relationship status may vary over time as well as for particular component and service provided by the supplier.
Supply Base Assessment in ZFlow
The following shows Supply Base Assessment in ZFlow. These assessments are based on a variety of qualitative and quantitive assessments that were performed through out the Supplier Development lifecycle.