The case for supplier development

The recent backlash surrounding worker conditions at one of Apple's supplier facilities is a prime example of why companies need a focused supplier development program as part of their overall Supplier Relationship Management (SRM) initiative. As companies like Apple and others have discovered, the liability these supplier relationships pose to the image of a company can be significant. Historically, most mid-size and large companies have had some type of supplier development program, which typically included a supplier certification program. It was common for companies to conduct on-site audits and implement performance improvement plans. Companies that have diluted their supplier development programs have lost an opportunity to build better relationships with existing suppliers and to begin solid relationships with new ones. To succeed, a supplier development program requires participation and cooperation from both internal and external stakeholders.