View the supply base as an integral part of the supply chain game plan strategy.

Establish a customer-supplier partnership business understanding that encompasses a long-term commitment, mutual trust, respect and continuous improvement.

Develop joint continuous development teams looking at improvements within each other s organization.

Develop routines and disciplines for measuring the relationship and the approaches to yielding continuous improvements.

Understand that the supply base as an integral part of the supply chain can only be sustained by profit. The longevity of the relationship is better guaranteed by eliminating waste and improving services.

Clarify communication channels.

Specify order rules.

Clarify total inventory objectives.

Specify logistics flows.

Defined and managed engineering change processes.

Packaging arrangements.

Quality expectations.

Continuous improvement framework.

Supplier development is an ongoing formalized plan for specific improvements and reviews, and might include:

• Quality: assured by design and supply.

• Delivery: logistics flows, performance improvements, scheduling and materials agreement, minimum lead times/lot sizes/total inventory holding at customer/supplier.

• Cost: relationship assessment and strategic review of all business interactions for cost/waste reduction opportunities, including time.

• Administration: demand and engineering change management and co-operation and responsiveness. Speed of communication transaction optimization, including EDI, e-mail, web teleconferencing, linked systems.

• Technology: business relationship to include proactive technical leadership and product development/feasibility at earliest design stages. Supply partners are actively encouraged to invest in becoming market leaders and continuously innovative.

• Attitudes: confident trusting relationship. Information sharing is considerate, timely...