Outline Beckford's (2002) seven stages in the supplier development

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(1) Make a commitment to supplier development
The senior management of an organization must be committed to the process of supplier
Development and its outcomes which may include the need to provide short – term
Financial support and to commit the workforce to the strategy.
(2) Audit and evaluate the internal standards
The customers need to audit and evaluate the process in which the supplier’s inputs are used, to
ensure that it met is the current internal expectations. Similarly, the inputs themselves must also
be evaluated. If a process is failing because of internal factors, then no amount of suppliers
development will cut it. Critical issues that need evaluation include examination of vendors
financial and production capability and vendors process capability. If suppliers are be
approached to improved their performance, it is vital that the buyer can precisely demonstrate the
need by showing the impact on the buyers own output.

(3) Define and Quantify the necessary Changes
The customer need to determine what standards it expects from its suppliers and consequently,
what changes are necessary or desirable to meet the required standards. This defines the initial
scope for the supplier development strategy and provides a basis for measuring subsequent
performance improvement.

(4) Develop agreements with identified Supplier
This step entails the development of agreements, however, if the suppliers are not willing to
joint programme the customer need to look at other alternatives sources. The supplying
organization must be prepared to make the same commitment to improving performance as the
buying organization. The basis of moving forward should b a written agreement setting out the
main objectives of the programe and the benefits to be derived.

(5) Form Joint Teams and development Training Programmes
The joint teams may take the terms of quality circles and may require training in order to
functions effectively ideally, teams should include representatives of all relevant functions in the
two organizations, for instance, it should include sales staff, operational staff, accounting staff
costing purposes, statisticians for development of processes control, et.c.

(6) Definition of team Objectives, deliverables and Timescales
This is the implementation phase; where the designated teams are require defining precise
objective, tasks and timetable in the light of the current performance gap.

(7) Implementation of Changes and Monitoring Impacts
This is concerned with implementing any changes arising and monitoring the impact against the
expected benefits. It may require a steering or supervisory board to oversee the implementation
programme, especially if the strategy requires transfer of learning. There is need for continuous
auditing through verification of the effectiveness of the vendors quality systems and processes
and also recognizing good performance by way of giving of awards.

NatalieR answered the question on May 10, 2022 at 07:17

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Outline Beckford's (2002) seven stages in the supplier development

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