Supplier Development/Reverse Marketing

Supplier Development/Reverse Marketing

 

It is possible in the supplier selection process that no suitable source is available and the purchaser may have to create a source.  In this context, the purchaser does not initiate supplier development as an appropriate tool, but as the only alternative other than making the part or producing the product or service in house.

 

Reverse marketing/supplier development has a broader point of view.  The purchaser is aware that benefits will accrue to both the purchaser and the supplier, benefits the supplier might not yet be aware.  The benefits may be limited to the particular order at hand, or they may include more far-reaching aspects, such as technical, financial, and management processes, skills, or quality levels; reduction of marketing effort; use of long term forecasts or permitting smoother manufacturing levels and a minimum of inventory.

 

One of the most important arguments in favor of reverse marketing not yet mentioned arises from future considerations.  If the supply role is envisaged s encompassing not only the need to fill current requirements but also the need to prepare for the future, reverse marketing is valuable in assuring future sources of supply.