Linkages is a phenomenon which measures the capability of an industry to generate demand for the products of the other industries. Form the point of view of development strategy, linkages are one of the essential feature of an industry.

New business ventures have rather limited resources, generally suffer from liabilities of smallness and newness and rely on external business relationships, typically with suppliers for developing and acquiring necessary resources.

Supplier development is working collaboratively with critical, strategic and high-potential suppliers to improve their capabilities and competitiveness in the areas of cost, quality, time and technology for the mutual benefit of both the customer and the supplier.

Building a long term healthy relationship between supplier and organization will allow for ideas and feedback to be passed between the two. This will allow for the improvement of operations, streamlining the supply chain and reducing costs in addition to improving customer service.

The main benefit of having strong, reciprocal supplier relationships is getting more value for the company. The better entrepreneurs know their suppliers and they know the entrepreneurs, the more likely entrepreneurs are to receive personalized service, discounted prices, and uniquely beneficial terms.

The goal is to ensure that suppliers meet or exceed the buyer’s expectations in terms of quality, delivery, and cost. There are many benefits to effective supplier management, including improved quality and delivery of goods and services, reduced costs, and improved relationships with suppliers.