Eskom Procurement Book 2015

SUPPLIER RELATIONSHIP MANAGEMENT

Figure 5.4: The supplier development process [16].

The supply management team has to ensure that it has a clear understanding of the concept of supplier development and what it involves. This will ensure that only those programmes that they have a thorough grasp of and the capacity to complete will be implemented. If these aspects are not satisfactory, it is best to wait until the employees concerned are ready. Supplier development may be implemented as a once-off project or as a continuous long-term programme. This being the case, the outcome of the selection process for supplier development may best be reflected in the following three categories: • The supplier is suitable for immediate development: This is a supplier who would have scored highly in meeting the specified selection criteria and is therefore critical and strategic to the organisation. Developing this supplier typically provides suitable rewards for the organisation. This supplier will immediately be contacted to begin negotiations regarding the development programme. • The supplier has been placed on hold as a potential candidate for future development: This supplier will have obtained a moderate or average score. The supplier is important, but may not be categorised as strategic to the organisation. The supplier will not be discarded but will possibly be suitable for a future supplier development programme. • The supplier is not suitable for development investment: This is a supplier who does not merit any supplier development. Any efforts to develop such a supplier will waste resources. The supplier will have obtained a very low score in the selection criteria.

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