It is well know that the long replenishment lead-time, large order tots. Expected
shortage of products, fluctuated product and limited information sharing are the major obstacles to supply chain coordination. However, one key factor influencing the performance of supply chain relationship is trust. Through the high degree of mutual trust, supply chain partners can develop a strategy to maximize supply chain benefits collaboratively. The development of trust requires a lot of effort, such as the partners’ need to value the relationship, identify correct roles, agree with effective contracts, and be willing to resolve the conflict. Then, though a long period of cooperation, the trust can be gradually built up. Therefore it is clear that the supplier development is a major task in supply chain management (Ayer, 2001). Supplier development involves a long term cooperative effort between a buying firm and its suppliers. It is aimed at creating and maintaining a network of competent suppliers. The development activities include supplier selection and monitoring supplier assistance and training, the provision of incentives for continuous improvements and supplier organizational integration. The ultimate objectives of supplier development are supplier base reduction, concurrent engineering reduction in cycle time, reduction, concurrent engineering, reduction in cycle time, reductions in inventories, and increases in customer satisfaction (Hahn et al., 1990). Grieco (1989) suggests that there should have five steps in the supplier certification process like preliminary evaluation, product design and quality certification, a review of the supply process, performance monitoring and certification. The Raytheon process for supplier development has six steps namely the identification of supplier candidates for projects, the definition of objectives and resources, the identification of baseline opportunities and rank, the analysis of selected opportunities, the implementation