Critical Success Factors for Supplier Development and Buyer Supplier Relationship

Abstract

Development of supplier base is becoming mandatory for buyers, as it is not possible to manufacture all components in house, or to search new supplier every time. It is recommended that supplier base of buyer should be self-efficient and developed one to achieve competitive advantages. This development of supplier can be achieved by applying different supplier development practices and buyer supplier relationship practices as per the requirement. In this article, Exploratory Factor analysis (EFA) is applied for grouping the critical success factors with their items by using SPSS software. 6 factors viz., Drivers for Supplier Development Practices, Supplier Development Practices, Buyer supplier Relationship Practices, Buyer supplier Relationship Improvement, Competitive Advantages and Profitability were formed with their respective items. The multi-item scale shows strong evidence of reliability as well as convergent, discriminant validity in a sample. EFA and Reliability Analysis were applied on data for validation of instrument. Data from 87 respondents working in manufacturing sector were used for analysis.

Soft Skill-Based Training Model for Employee Retention

“…Identification and implementation of the training to the supplier or the service provider can be beneficial for the business. Training programme embarking on the quality improvement and management, statistical process control, experimental design, methods of sampling and various methodsofinspectioncanbereallyhelpfulfortheoveralldevelopment (Joshi,P.S.,et al,2016). Theempowermentofemployeesthroughmeansoftraininganddevelopmentprogramsincreases employee commitment, motivation, productivity and hence increased customer satisfaction.…”

To examine the relationships between supplier development practices and supplier-buyer relationship practices from the supplier’s perspective

“…It is recommended that the supplier base of a buyer should be self-efficient and a developed one to achieve CAs. Therefore, buyers should identify factors that motivate and affect the adoption of supplier development activities (Sarang et al, 2016;Chen et al, 2016). In today's supply, buyers should look beyond the supplier development and should focus on long-term relationship building with the supplier base.…”