Supply Base Strategies to Maximize Supplier Performance

Abstract

Competing in the mid‐to‐late 1990s will require world‐class firms to rely increasingly on their suppliers while at the same time developing more aggressive and executive supported purchasing, supply base and sourcing strategies, because suppliers′ performance is not meeting expectations of purchasers. This finding was one result of a research effort with over 100 different firms over a five‐year period to determine the importance of the supply base, current supplier performance and emerging supply base/sourcing strategies being used by leading firms to contribute to competitive advantage. It was further determined that significant opportunities exist to accelerate development of supplier capabilities and performance. Identifies and discusses continuous improvement and breakthrough supply base and sourcing strategies to achieve supply base improvement.