SRM Knowledge Check Practice Test 2025 - Free SRM Practice Questions and Study Guide

A Supplier Development Program primarily involves initiatives designed to enhance supplier capabilities. The focus is on improving the overall performance of suppliers, which can lead to better quality products, more efficient operations, and increased innovation. By investing in supplier development, organizations aim to strengthen their supply chain relationships and ensure that suppliers can meet or exceed the needs of the purchasing organization.

Enhancing supplier capabilities can take various forms, such as training, providing resources or technology, or collaborating on process improvements. The ultimate goal is to foster a mutually beneficial relationship where both the supplier and the buyer can thrive, resulting in better outcomes for both parties.

The other options do not fully capture the essence of a Supplier Development Program. Decreasing supplier costs may be a benefit of improved capabilities but is not the primary focus. Outsourcing supplier functions shifts responsibilities rather than enhancing capabilities. Project management tools may be relevant in managing the supplier relationship but are not indicative of a program dedicated to improving the suppliers' core functions and practices.