Supplier performance development

Abstract

The recent year's development in the industry has led to that procurement activities have increased in its importance. All in all, this means two changed prerequisites. Totally new claims will be charged on the procurement department. Further will also the relations to the company's suppliers' change. In order to cope with this development the companies have been forced to create systems for measuring, evaluating and developing suppliers as a way to reach higher competitiveness.

In this thesis we develop a common general process in the form of a recommendation to improve the essential parts of Lear Corporation&#39s suppliers&#39 delivery service performance. To solve our problem we investigate literature and previous research in the subject. We also conduct a benchmarking study of five companies in order to get ideas of how to approach the problem. In our recommendation we define some essential key variables in the area of delivery service and give suggestions for supplier evaluation. If the supplier diverge from the objectives we recommend a four step supplier development process.