(c) Using a practical example of your choice , explain how you would apply the supplier development process to enhance long term value between the procuring entity and the supplier organization. [10marks]

The supplier development process is a strategic approach used by organizations to enhance the long-term value of their supplier relationships. This process involves several steps, including identifying potential suppliers, assessing their capabilities, developing a partnership, and monitoring the relationship over time.<br /><br />1. **Identifying Potential Suppliers**: The first step in the supplier development process is to identify potential suppliers who can meet the organization's needs. This involves researching and shortlisting suppliers based on factors such as quality, cost, capacity, and reliability.<br /><br />2. **Assessing Supplier Capabilities**: Once potential suppliers are identified, the next step is to assess their capabilities. This includes evaluating their quality systems, production capabilities, financial stability, and reputation. The goal is to ensure that the supplier can consistently deliver high-quality products or services that meet the organization's requirements.<br /><br />3. **Developing a Partnership**: After assessing the capabilities of potential suppliers, the organization can develop a partnership with the chosen supplier. This involves establishing clear communication channels, setting performance expectations, and defining the terms of the partnership. The aim is to create a mutually beneficial relationship where both parties work together to achieve their goals.<br /><br />4. **Monitoring and Improving the Relationship**: The final step in the supplier development process is to monitor and improve the relationship over time. This involves regularly reviewing the performance of the supplier, providing feedback, and identifying opportunities for improvement. The organization and the supplier can collaborate to address any issues and work towards continuous improvement.<br /><br />**Practical Example**: Consider a manufacturing company that wants to enhance its relationship with a key supplier of raw materials. The company can apply the supplier development process as follows:<br /><br />- **Identifying Potential Suppliers**: The company researches and identifies several potential suppliers of the raw material. It considers factors such as the supplier's reputation, capacity, and cost.<br /><br />- **Assessing Supplier Capabilities**: The company assesses the capabilities of the identified suppliers by reviewing their quality systems, production capabilities, and financial stability. It ensures that the chosen supplier can consistently deliver high-quality raw materials.<br /><br />- **Developing a Partnership**: The company develops a partnership with the chosen supplier by establishing clear communication channels, setting performance expectations, and defining the terms of the partnership. It works with the supplier to ensure that the raw materials meet its specifications and are delivered on time.<br /><br />- **Monitoring and Improving the Relationship**: The company regularly monitors the performance of the supplier, provides feedback, and identifies opportunities for improvement. It collaborates with the supplier to address any issues and works towards continuous improvement in the quality and delivery of the raw materials.<br /><br />By applying the supplier development process, the manufacturing company can enhance its long-term value with the supplier organization, leading to improved quality, reduced costs, and increased reliability of the raw materials supplied.