Supplier development (SD) is a kind of collaboration among a buyer and a supplier to seek
constant improvement in supplier performance and capabilities to provide better quality, on-time delivery of products and services at lower cost. The purpose of this paper is to exhibit and summarize the important aspects of SD benefits, SD criteria and SD activities.
SD is very essential activity for long-term or strategic benefits to buying organization
for their survival and competitive advantage in this era of fierce competition (Routroy
and Pradhan, 2014). Buying organization’s organizational performance can be improved
through effective communication, partnership strategy and long-term relationship with
supplier, as a part of SD activity (Li et al., 2012). Establishing long-term buyer-supplier relationship gives a better direction/option of investment for buyer (Wagner, 2011).