Title: Supplier development and buyer-supplier relationship strategies - a literature review

Authors: Ilkka Sillanpää; Khuram Shahzad; Elina Sillanpää

Addresses: University of Vaasa, Wolffintie 34, 65200 Vaasa, Finland ' Department of Production, University of Vaasa, Wolffintie 34, 65200 Vaasa, Finland ' School of Science, Aalto University, P.O. Box 11000, 00076 Aalto, Finland

Abstract: Academic and corporate interest in supplier development and buyer-supplier relationship has increased substantially in recent years. This paper provides a framework for analysing the current understanding of supplier development strategies, its impact on performance, and buyer-supplier relationship approaches. There is an increased need for buyers and suppliers to strategically collaborate to build a stronger and long-term relationship. The goal is to get extended understanding in buyer-supplier relationship and supplier development strategies. Supplier development is a process of understanding including four steps: 1) supplier assessment; 2) competitive pressure; 3) supplier incentives; 4) direct involvement. Future research can be more empirically focused including multiple case study in global environment to validate the supplier development strategy approaches and help the organisation to develop their supplier's strategies. The presented literature review offers supplier development strategies for empirical case studies and a systematic way to build buyer-supplier relationships to improve the performance.

Keywords: supplier management; supply chain integration; buyer-supplier relationship; supplier development strategies; procurement management; SCM; supply chain management; supply chain performance; long-term relationships; supplier assessment; competitive pressure; supplier incentives; direct involvement; literature review.

DOI: 10.1504/IJPM.2015.066283

International Journal of Procurement Management, 2015 Vol.8 No.1/2, pp.227 - 250

Received: 08 Nov 2013
Accepted: 21 Dec 2013
Published online: 24 Jan 2015 *

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