Vendor Development

“Any activity that a buying firm undertakes to

improve a vendor’s performance & capabilities to
meet the buying firm’s supply need.”
Vendor development is the second stage of vendor
selection. It is the strategic program of the company
to improve the raw material, quality, delivery &
competitive price services.

Benefits of vendor development

 Vendor development is very helpful to provide timely delivery to the customers.
 It will reduce our cost of purchase that will help us to become competitive in the market.
 It will increase our profit margin at our final product.
 Establishing & manufacturing of new designs, improved quality & reliability of products
will be achieved.