What is the Supplier's Development Methodology (SDM)?
It is a methodology of productive chains with a business and social approach, which aims to improve and transform business relationships in a value chain between a lead company (a large or medium-sized enterprise) and its suppliers (micro, small or medium enterprises).
What is the objective of SDM?
Aligning goals and strategic requirements among enterprises in the value chain, promoting business professionalization as well as better management, operation and communication practices.
What are the key elements of SDM?
Builds mutually beneficial relationships in the value chain with a “win-win” approach.
Improves companies’ competitiveness and increases the quality of their products/services.
Boosts competitive capacities of strategic sectors by strengthening value chains and promoting quality employment.
Supplier's Development Methodology
SDP is one of the three successful international methodologies which stimulates the Albanian economy by increasing the productivity of small and medium enterprises in strategic value chains.
Who are the main stakeholders?
Lead companies
Supplier companies
Chambers of commerce
Government and academic institutions
International cooperation partners
Results in Albania until December 2023
How is it implemented?
What are the benefits for the Lead Company?
- Establish a solid communication link with its suppliers
- Reduce costs in the supply chain
- Avoid obstructions in production lines
- Reduce risks of poor quality in products/services
What are the benefits for the suppliers?
- Improve management practices
- More competitive prices (increased productivity and cost reduction)
- Improve delivery time cycles
- Improve customer service
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