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Examples of 30 Types of Supplier Development in Extant Studies

SD1 Supplier Evaluation

Wagner & Krause (2009): Supplier evaluation and feedback efforts represent evaluations of a supplier’s quality, delivery, cost, and service performance, and other facets of performance the buying firm may deem important.

SD2 Supplier Training

Carr et al. (2008): The buyer may send its employees to the supplier’s facility to offer training or the buyer may invite the supplier to participate in training that is offered at its facilities;

Lo & Yeung (2006): The buyer provides training and education for suppliers to improve their performance

SD3 Direct Incentive Joshi (2009): The tools that are “designed to induce suppliers to improve their performance based on a desire for increased business with the firm” (Krause et al., 2000; p. 36)

SD4 Performance Expectation

Humphreys et al. (2004): buyer’s expectation for supplier performance improvement; Increasing supplier performance goals is an efficient way of motivating suppliers since without the urging of buyers, suppliers are not likely to initiate programs designed to enhance performance

Powell (1995): Requiring suppliers to meet stricter Quality specification SD5 Financial

Assistance

Abdullah et al. (2008): providing soft loans to start production, as well as commercial loans for other purposes including purchase of machinery, advances against payments and the like

SD6 Physical Asset Support

Li et al. (2007): provide this supplier with equipment or tools for process improvement (provide this supplier with capital for new investments at their facilities

SD7 Technical Assistance

Abdullah et al. (2008): Technical assistance in terms of automation and modernization of machinery, upgrading of tooling and equipment, facilitating technical agreements, and the like

SD8 Managerial Assistance

Abdullah et al. (2008): Provide Management related assistance

Kim (2006): Provide managerial guidance/procedures to improve suppliers’ performance

SD9 Information Sharing

Krause et al. (2007): The degree to which each party discloses information that may facilitate the other party’s activities supplier evaluation and more ‘‘direct involvement’’ supplier development activities

Li et al. (2007): The extent to which critical and proprietary information is communicated to one’s supply chain partner

SD10 Supplier Rating Wen-li et al. (2003): Evaluate suppliers through a supplier rating system SD11 Supplier

Involvement

Humphreys et al., (2004), Sanchez-Rodriguez (2009): involvement of the supplier in the buyer’s new product design process

SD12 Plant Visit Krause et al. (2007): Regular visits to the supplier by the buying firm’s [engineering] personnel.

Krause (1997): Site visits by your firm to supplier’s premises to help supplier improve its performance

SD13 Invite Supplier to Visit

Lee & Humphreys (2007): inviting the personnel of the supplier to visit the buyer’s own plant.

Krause (1997): Inviting supplier’s personnel to your site to increase their awareness of how their product is used

SD14 Dynamic Communication

Humphreys et al (2004): Open and frequent communication between buying firm’s personnel and their suppliers was identified as a key approach in motivating suppliers

SD15 Supplier Certification

Modi & Mabert (2007): the use of [supplier certification program] to certify this supplier’s quality;

Krause & Scannell (2002): Use of a supplier certification program to certify supplier’s quality, thus making incoming inspection unnecessary

132 SD16 Competitive

Pressure

Modi & Mabert (2007): Use multiple suppliers for the purchased item to create competitive pressure

Krause & Scannell (2002), Krause et al. (2000): Use of two or more suppliers for this purchased item to create competition among suppliers

SD17 Co-Location Ragatz et al. (1997): Co-location of buyer/seller personnel

Li et al. (2007), Humphreys et al. (2004), Wen-li et al. (2003): Assign support personnel to the supplier’s facilities

Krause et al. (2007): the allocation of personnel to improve the supplier’s skill base

SD18 Supplier Council Fawcett et al. (2006): The supplier council is composed of a dozen senior level company managers and 16 senior executives from highly valued suppliers SD19 Quality-focused

Supplier Selection

Shin et al. (2000): Quality focus’ meaning that quality performance is the number one priority in selecting suppliers

Forker & Stannack (2000): the importance of quality (versus price or schedule) is greatest in their supplier selection decisions

Ahire et al. (1996): Quality is considered as a more important criterion than price in selecting supplier

SD20 Increase Supplier Intensity

Foster Jr & Ogden (2008): narrowing the numbers of suppliers Kaynak (2005): Reduce the number of suppliers

Shin et al. (2000): Rely on a small number of high quality suppliers Forker & Stannack (2000): Reliance on a few dependable suppliers SD21 Community of

Suppliers

Sako (1999): A platform or network, set up by the buyer, for suppliers to facilitate supplier learning ongoing communication

SD22 Promise of Business

Modi & Mabert (2007): a promise consideration for improved business in the future

Krause & Scannell (2002), Krause & Ellram (1997a), Krause (1997): a promise of future business or current benefits

Forker & Stannack (2000), Forker et al. (1999), Forker (1997): a promise of extension of long-term contracts to suppliers

SD23 Supply Rationalization

Langfield-Smith & Greenwood (1998): Supply Rationalization program focuses on developing a core family of suppliers that are more competitive (usually using supplier base reduction).

SD24 Quality Assurance

Dong et al. (2001): Quality assurance programs help improve suppliers’ product quality and facilitate JIT manufacturing

Tan et al. (1999): the use of quality assurance programs for monitoring supplier's processes and products

SD25 Employee Exchange

Wagner & Krause (2009): Employee Exchange consists of various ways to co- locate either buying firm or supplier firm employees so that they are able to learn from each other and communicate face-to-face and share even more tacit information during their residence with the other firm

SD26 Clear

Specification

Forker & Stannack (2000): Clarity of specifications provided to its suppliers by this customer

Powell (1995): Requiring suppliers to meet stricter Quality specifications SD27 Trust Building Li et al. (2007): The buyer’s trust in the information suppliers shared and

suppliers’ commitment. Ahire et al. (1996): Develop a long-term relationship with suppliers

Lo & Yeung (2006): Credibility is the proactive attitude of a company towards supplier development. Ragatz et al. (1997): Formal trust development process/practices

SD28 Evaluation Feedback

Sanchez-Rodriguez et al. (2005): Report supplier evaluation results to suppliers Wagner & Krause (2009): Provide suppliers with the feedback about their performance

Oh & Rhee (2008): Inform evaluation results after evaluating suppliers

Modi & Mabert (2007) , Krause et al. (2007): Provide feedback about results of the evaluation

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SD29 Joint Action Lettice et al. (2010): Work with supplier to improve performance, solve problems and build up their business

Ghijsen et al. (2010): Collaboration with suppliers in performance improvement

McGovern & Hicks (2006): build/form collaborative relationship with suppliers Narasimhan et al. (2008): Joint problem solving with suppliers

SD30 Buyer’s Involvement

Simpson & Power (2005): Buyer’s involvement in the process of suppliers’ performance improvement

Forker et al. (1999): Involvement with supplier’s product development process Monczka et al. (1998): Participate in supplier’s planning and goal-setting activities

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Appendix III: Cover Letter & Survey to SD Scholars