Abstract
To enhance the competitive advantage, the large companies in the manufacturing industry have to train and assist their suppliers which have long-term cooperation relationship through “Supplier Development Program (SDP).” Many researches had pointed out SDP indeed helps the companies bring out the positive benefits. While the advance of supply chain management, enterprises foucs on core competencies and outsources more design and manufacture. Havig the idea of the relationlization of the supplier base, buyer enterprises maintain the fewer key suppliers and increase the dependence on them to continue providing competitive sub-systems and components. Suppliers in turn are reliant on their customers for improvement suggestions and innovation information. With the transition of the buyer-supplier relationship, SDP more emphasizes on the the bilateral interaction rather than buyers’ unilateral resource investment. This paper discusses the suppliers’ attitude and will to participate in the SDP initiated by the buyer enterprise, and analyzes the interaction between SDP and the suppliers’ interior activities from the perspective of the supplier. This research is based on case studies of six 1st.-tier suppliers in Taiwan automobile industry. The case studies reveal that the purchasing standards of the automobile factury affect the suppliers to adopt the strategies. The participation degree of SDP of 1st.-tier suppliers in Taiwan automobile industry is very enthusastical. SDP can assistance the suppliers in their operation management, customer management, and innovation management. SDP improves the suppliers’ business performace in quality as well as cost, and have little direct impact on supplier technology capability.