Question

Supplier development refers to:

a) the practice of dividing large orders among several suppliers rather than a single one to avoid possible manufacturing delays due to bad weather, plant mishaps, union issues, etc.
b) the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers.
c) the shift of a firm from supplier to manufacturer when repeated experience with a product and excellent buyer/seller relationships make the change both feasible and profitable.
d) the deliberate effort by suppliers to build relationships that shape buyers' needs, as well as the needs of ultimate consumers.
e) the practice of establishing a close relationship with one supplier rather than many to ensure loyalty and preferential treatment when filling exceptionally large orders.

Answer 1

The correct option is B: the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers

Step-by-step explanation:

Supplier development is based on the idea of establishing a one-to-one relationship between organizational buyers and suppliers. This establishes a commitment between both parties that help improve their performance to meet the buyer's requirements.