Why is supplier development considered beneficial to both buyers and suppliers?

Supplier development is beneficial to both buyers and suppliers because it aims at shared commercial benefits. This approach emphasizes collaboration and mutual investment in improving capabilities, processes, and performance, ultimately enhancing the relationship between both parties. By focusing on creating value together, suppliers can improve their efficiency and product quality, while buyers benefit from enhanced supply chain resilience and reduced costs.

The cooperative nature of supplier development fosters innovation and encourages suppliers to invest in their capabilities, ensuring that both sides move towards a common goal of improved performance and competitive advantage. This shared focus creates a more stable and sustainable relationship and often results in increased loyalty and improved service levels from suppliers.