英语论文网

Upper management involvement again prevails but this time it is of supplier's side. Cross functional team must meet upper management of supplier side and establishes strategic alignment which helps to align the technology of supplier and buyers. Measuring the capability of supplier's side for example how much they will be able to implement the suggestions. Hence, upper management involvement has significant influence on the outcome of this step of supplier development-meeting with supplier top management.

Define details of agreement

After identifying project, the parties need to agree on the specific metrics for monitoring its success. Prior to setting up supplier development program and investing in supplier development activities, establish goals it want to achieve and how to achieve these goals (Wagner & Krause, 2009). The metrics may include percent of cost saving to be shared or percent of quality improvement to be achieved pr percent of delivery etc. The agreement also must specify milestones and deadlines for improvement as well as the role of each party-who is responsible for the project success and how and when to deploy the allocated resources. Upon reaching an agreement the project should begins. Perkins was trying to convince the supplier to consider one of the Kaizen but they were not considering it because another company's recent kaizen failed to yield significant improvement. So agreement should be defined before supplier development program get started. The agreement should also specify the role of each party who is responsible for success of the project. (Krause, Handfield, & Scannell, An empirical investigation of supplier development: reactive and strategic processes, 1998) Hence, effective and written communication has significant influence on the outcome of this step of supplier development-defining details of agreement. For example Hyundai motor company uses financial incentives to motivate suppliers. They pay class 1 suppliers in cash, class 2 are paid net 30 days , class 3 are paid net 60 days and class 4 suppliers are paid net 60 days and receive no new business. So suppliers know how Hyundai evaluate suppliers thus they take steps to ensure high performance (Rhodes, Warren, & Carter, 2006).

Monitor status and modify strategies

To ensure continued success, management must actively monitor progress and revise the strategies if business warrants (Wisner, Tan, & Leong, 2009). Communication is the key of success in this step as exchange of information is required to drive the project towards success. Unremitting communication is required with supplier community via supplier councils as suppliers are part of supplier council that provides feedback on buyer's performance (Krause, Handfield, & Scannell, An empirical investigation of supplier development: reactive and strategic processes, 1998). Co Priorities changes after attaining certain milestone so it is essential to change the strategies.

本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。