November 5, 2025
The best suppliers are engaged on an individual level to build relationships and create benefits for all parties involved, but there is no single right approach to supplier development. The procuring company and supplier will typically choose a strategy that best suits their relationship, supply market, and industries they serve.
The Role of Supplier Development in Supply Chain Success
Outlined below are just some of the reasons why many more companies are investing in supplier development.
Earn a Competitive Advantage
Through educating and mentoring diverse suppliers in their network, companies can partner with vendors that understand every facet of their business, from pricing to quality requirements. This, in turn, empowers the supplier to offer more competitive pricing and services in exchange for a long-term and secure relationship, along with key client access.
Encourage Collaboration Between Individual Suppliers
Small, diverse suppliers often lack the resources, skills, or experience to meet complex or demanding business needs. Supplier development programs can encourage small suppliers to work together to offer solutions that they would be unable to provide alone.
Communication Drives Innovation
Encouraging diverse suppliers to work together to develop unique solutions can lead to out-of-the-box thinking and increase innovation. This can result in the development of products and services not currently available on the market, thus creating an advantage.
Create Stronger Long-Term Supplier Relationships
Supplier development requires trust and collaboration. These elements encourage companies to foster long-term relationships with their suppliers, helping them gain the economic and business resources they need for continued growth and success. This can eventually nurture a healthier and more beneficial partnership for all key stakeholders.
Resolve Performance and Quality Issues
One-on-one interaction with various suppliers offers opportunities for improvement on both sides. For example, the supplier can highlight ways in which the customer can provide support, such as improved communication of requirements or access to specification documents. Conversely, the customer can also highlight areas where the supplier’s service can be improved, which can add value for them with other clients they work with, as well.
Enhanced Customer Satisfaction
While supplier development is aimed at improving the performance of the supplier to the benefit of the purchasing company, personal relationships with the supplier can also have a positive impact on the end customer. Stronger customer-supplier relations can lead to better communication, greater efficiencies, and ultimately, higher-quality end products.
Supplier development and relationships should be the primary focus of any organization that works with a diverse supplier base. Better supplier relationships permeate throughout the supply chain, translating to better products and enhanced customer satisfaction for all.
I encourage all members to reach out to their top 10 suppliers and set up a routine quarterly roundtable meeting to ensure that all parties are achieving their desired goals and objectives. It is imperative these days, with tariffs looming everywhere, to understand your key supply partners’ ever-changing dynamics, as well.
2026 is right around the corner—what a great way to kick it off in a positive way for key stakeholders. Cheers to a great 2026 and beyond. Please consult your Ask Tom or Ask Ralph resources for more details on how we can assist your efforts.
Tom Weber is president of WeberSource LLC and is AICC’s folding carton and rigid box technical advisor. Contact Tom directly at asktom@AICCbox.org.
