Strategic supplier development

Sebastian Durst - 2011

How can firms establish supplier networks with a real competitive edge? In his thesis, Sebastian Durst says how

Suppliers make decisive contributions to rendering their customers' cost structures competitive, to their capabilities for innovation and their operational performance. In many industries, the share of value created by suppliers is above 50%. For most companies, in short, a sound and effective supplier network is paramount for success.

What can companies do to establish a supplier network that provides a real competitive edge? Which options are most promising? Which parameters do they need to keep in mind?

In his recent PhD thesis, Sebastian Durst from our Operations Strategy CC has thoroughly analyzed these questions. Based on a large-scale empirical study he shows how and under which circumstances companies should develop their suppliers strategically.

Parameters like the degree of supplier dependency, for instance, have a positive effect on how successful a company is in developing its supplier base in a strategic way. Sebastian is also able to show that only a few options of strategic supplier development have proven successful in practice.