Supplier Development Management

Competition has broadened its scope from among enterprise to supply chainsstep by step in21th century, enterprise should not only own competitive advantagemore than their opponents, but also need to work at competitiveness for supplypartner, the result of cooperation is to achieve win-win situation in finally, as an keylink of supply chain, supplier are becoming more and more important to corporationdevelopment. More and more enterprises start to implement supplier developmentproject which help their supplier to solve problem and improve both sides’ capabilityand performance, According to the Krause definition, supplier development is anyactivity initiated by a buying organization to improve the performance of its suppliers.The paper take BI Corporation’s supplier development project for one keysupplier as research object, in the absence of domestic research, factors which affectBI Corporation’s supplier development process have been identified with advancedforeign research result including supplier development definition, key factor, processmold etc, defined12key factors by expert, including Communication, Long-termstrategic, Development perspective, Supplier’s performance, Joint action, Level ofinvolvement, Supplier incentives, Team leader, Supplier evaluation, knowledgetransfer, Top management support, Trust. The Interpretive structural Modeling(ISM)approach has employed to develop the structural relationship among supplierdevelopment factors and also tried to define the level of different factors based ontheir driver/dependence power which divided factors to4quadrant as autonomousfactors、Dependent factors、Linkage factor, Independent factors with MICMACanalysis, supplier development process ISM drawing has been built by their mutualrelationships, the factors have been divided into three types: Surface directly factor,mesosphere factor and the root directly factor based on the analysis result of ISM andMICMAC; then, based on the research of4excellent enterprises practice、BIcorporation supply management status、factor characteristic,the development processmodel has been optimized through establishing systemically implementation and management method such as quality and project management.Finally, the research result shows the effectiveness of this process model by acase study for BI Corporation’s supplier development project. It proved an concise、effective and understandable working program for BI Corporation, it broaden thescope of the mind and method for manger and decision maker, as well as an academicand experiential reference for domestic enterprises which are preparing supplierdevelopment.