Analyzing a manufacturer’s returns from supplier development programs

Abstract

Supplier Development Programs (SDPs) have become the best modes for the manufacturers to improve their suppliers’ overall capabilities. The SDPs are used to transcend and advance the manufacturer-supplier relationships into strategic and sustainable working relationships. They are also proven to be the potential ones in developing the innovative and competitive supply sources in the value addition process. However, there must be a testing procedure for a manufacturer to know whether or not its SDPs are providing the intended returns. In this regard, several Supplier Development Outcomes (SDOs) specifically under a manufacturer’s interest have been identified. They are further analyzed against the SDPs of a manufacturer using Kano quality model integrated with performance value analysis. The said testing procedure was tried in an Indian electronic manufacturing company and the obtained results are demonstrated in this paper as a case study. The proposed procedure was proven to be beneficial to a manufacturer in knowing the efficacies of its SDPs and accordingly examine the influences acting on the SDPs.