{"id":3273,"date":"2013-11-18T17:01:00","date_gmt":"2013-11-18T17:01:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2013\/11\/18\/definitions-of-supplier-collaboration-development-management-rationalization\/"},"modified":"2023-06-05T08:03:45","modified_gmt":"2023-06-05T12:03:45","slug":"definitions-of-supplier-collaboration-development-management-rationalization","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/definitions-of-supplier-collaboration-development-management-rationalization\/","title":{"rendered":"Definitions of Supplier Collaboration, Development, Management &amp; Rationalization"},"content":{"rendered":"<p><span style=\"font-family: helvetica;font-size: 12pt\">I hope that you have enjoyed the article, \u201c<span style=\"font-weight: normal\">Supplier Collaboration, Development, More.\u201d<\/span><\/span><\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p><span style=\"font-weight: normal;font-family: helvetica;font-size: 12pt\">In the article, I defined four terms:\u00a0 supplier collaboration, supplier development, supplier management, and supplier rationalization.\u00a0 I would like to expand on the distinction between the first three terms here.<\/span><br \/>\n<span style=\"font-family: helvetica;font-size: 12pt\"><span style=\"font-weight: normal\"><br \/>\n<\/span><span style=\"font-weight: normal\">You see, with supplier management (inclusive of, and somewhat synonymous with, supplier evaluation), you are sharing with your suppliers how you are measuring their performance.\u00a0 You\u2019ll tell them things like what percentage of their orders they are delivering on-time, what percentage of their items are being rejected for quality failures, what types of service complaints you have documented, and the like.\u00a0 Naturally, you are giving them orders to improve.<\/span><\/span><br \/>\n<span style=\"font-family: helvetica;font-size: 12pt\"><span style=\"font-weight: normal\"><br \/>\n<\/span><span style=\"font-weight: normal\">But one activity that is not implied in supplier management is instructing suppliers exactly how to improve.\u00a0 That\u2019s where supplier collaboration and supplier development come in.<\/span><\/span><br \/>\n<span style=\"font-family: helvetica;font-size: 12pt\"><span style=\"font-weight: normal\"><br \/>\n<\/span><span style=\"font-weight: normal\">With supplier collaboration, both your organization and the supplier are acting as equals.\u00a0 You are essentially acknowledging that you both have relatively equivalent expertise in the areas in which improvement is needed.<\/span><\/span><br \/>\n<span style=\"font-family: helvetica;font-size: 12pt\"><span style=\"font-weight: normal\"><br \/>\n<\/span><span style=\"font-weight: normal\">With supplier development, both parties are acknowledging that your organization is the one that possesses the higher level of expertise.\u00a0 As such, your organization is taking the lead to teach your supplier exactly what needs to be done to improve performance, increase capabilities, etc.<\/span><\/span><br \/>\n<span style=\"font-family: helvetica;font-size: 12pt\"><span style=\"font-weight: normal\"><br \/>\n<\/span><span style=\"font-weight: normal\">I hope that these definitions help to clear up some long-held confusion around ways to work with suppliers.\u00a0 We\u2019ll be getting deeper into the topic of working with suppliers in future editions of <a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\">PurchTips<\/a>.<\/span><\/span><\/p>\n<div><strong>Recommended Reading<\/strong><\/div>\n<div><a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/tips-for-preparing-for-spsm-exam\/\" aria-label=\"\u201cTips For Preparing For The SPSM Exam\u201d (Edit)\">Tips For Preparing For The SPSM Exam<\/a><\/div>\n<div><a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/procurement-parable-is-the-most-cooperative\/\" aria-label=\"\u201cProcurement Parable \u2013 Is The Most Cooperative Supplier Always The Best Choice?\u201d (Edit)\">Procurement Parable \u2013 Is The Most Cooperative Supplier Always The Best Choice?<\/a><\/div>\n<div><a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/youre-meeting-with-executivedont-blow-it\/\" aria-label=\"\u201cYou\u2019re Meeting With An Executive\u2026Don\u2019t Blow It!\u201d (Edit)\">You\u2019re Meeting With An Executive\u2026Don\u2019t Blow It!<\/a><\/div>\n<div><a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/more-persuasion-tips-for-supplier\/\" aria-label=\"\u201cMore Persuasion Tips For Supplier Negotiations\u201d (Edit)\">More Persuasion Tips For Supplier Negotiations<\/a><\/div>\n<div><a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/free-negotiation-webinar-on-wednesday\/\" aria-label=\"\u201cFree Negotiation Webinar on Wednesday at 11:30AM EDT\u201d (Edit)\">Free Negotiation Webinar on Wednesday at 11:30AM EDT<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>I hope that you have enjoyed the article, \u201cSupplier Collaboration, [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Definitions of Supplier Collaboration, Development, Management &amp; Rationalization - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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