Do you think a firm should engage in supplier development wh

Do you think a firm should engage in supplier development? when would it make sense? when would it not make sense?

Solution

yes, as per my knowledge a firm should develop its own supplier. the reason is \"the quality of any end product is highly depends on its raw material\". so, if we are able to collect quality raw material, there are good chances to produce a quality output.

and one more important thing is the terms and specifications of the raw material. in this competitive a small error in regular activity leads to huge loss in the business. every producer has his own specifications interms of quality of raw material and its ingrediants. we can not trust every supplier and ask them to supply the material. once we find the correct supplier, that is enough and we can focus on other activities of the business.

to maintain the quality we should stick and go with one supplier only. it helps to maintain the same quality at entire life and if possible we can improve the qualty of the material. irrespective of market conditions he will be supply the material at all the times.

and the limitation of this process is if the supplier has any problem it creates new problems to our firm. and if the supplier is not maintaining the specified quality levels we may lost our good will in the brand name. and some times the supplier may leak our information to the competitiors, which creates some other problems.