This paper reports some early findings related to supplier development: the result of prequalification, performance evaluation and supplier development from 5 pilot regions in 3 countries. It is a follow-up to an IGLC paper presented in 2011. Supplier development can be seen as a third option when make or buy options do not lead to desired results. It seems to be a little used option in the construction industry. This paper reveals that, at least in the pilot regions, supplier development needs to start from very basic things such as helping to fulfil legal and company requirements, and setting standards for measuring quality and delivery reliability. Over half of the supplier base does not fulfil the basic requirements. When suppliers do measure quality and delivery, measurements often do not capture issues important to their customers, the projects. The findings have resulted in re-defining supplier segments, presented in this paper along with next steps in supplier development.
Lean, supplier, supply chain management, preferred supplier program.