ABSTRACT

Early Supplier Involvement (ESI) has been described by the Institute of Supply Management as: a practice that brings together one or more selected suppliers with a buyer’s product design team early in the product development process. The thinking behind the concept is one of joint-working and collaboration between buyer and supplier. In effect, the buyer utilises the supplier’s expertise in a particular product or service by involving them in the development of the specification and design. In determining the most appropriate way to involve the supplier in the development process of a new product or service, the buyer is able to utilise the supplier’s market and/or technical knowledge in the best way. Buyers should not follow the model blindly without assessing the risks in full. ESI can open the buying organisation up to additional risks, such as loss of control on critical information, increased risk of competitive discovery and/or longer lead-times.