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The Supplier Development Program: A Conceptual Model
Author(s) -
Hahn Chan K.,
Watts Charles A.,
Kim Kee Young
Publication year - 1990
Publication title -
journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 0094-8594
DOI - 10.1111/j.1745-493x.1990.tb00498.x
Subject(s) - purchasing , business , conceptual model , order (exchange) , process management , competitive advantage , process (computing) , supplier relationship management , empirical research , industrial organization , marketing , computer science , supply chain , supply chain management , finance , philosophy , database , epistemology , operating system
In order to compete effectively in the world market, a company must have a network of competent suppliers. A supplier development program is designed to create and maintain such a network—and to improve various supplier capabilities that are necessary for the buying organization to meet its increasing competitive challenges. This article details a conceptual model that describes the organizational decision process associated with a supplier development program. The proposed decision model can serve as a guideline for designing a supplier development program that can link purchasing strategy with a firm's overall corporate competitive strategy. Empirical evidence drawn from the experience of several companies actively involved with such a program is used to validate the model.