Supplier development refers to activities undertaken by a buying organization to improve the performance of its suppliers. This typically involves formally evaluating suppliers to understand their capabilities, conducting site visits to observe operations and identify areas for improvement, and providing training to help suppliers meet the buying organization's standards and requirements. The goal is to enhance the supplier's performance, leading to improved quality, cost, and delivery times, ultimately benefiting the entire supply chain.
References:
* Supplier Evaluation and Performance Excellence: A Guide to Meaningful Metrics and Successful Results by Sherry Gordon.
* CIPS (Chartered Institute of Procurement & Supply) guidelines on supplier development.

When only two suppliers respond to an RFQ and their quotes are much higher than expected, it is likely that the specifications were too narrow. Narrow specifications can limit the number of suppliers who are capable of meeting the requirements, reducing competition and driving up prices. Reviewing and potentially broadening the specifications can attract more suppliers and result in more competitive pricing.
References
* ISM (Institute for Supply Management). Effective RFQ Process Management.
* CIPS (Chartered Institute of Procurement & Supply). Developing Specifications and Requirements.

* Purpose of RFI: A Request for Information (RFI) is used to gather information about the capabilities of potential suppliers.
* Market Intelligence: RFIs are useful for understanding the market landscape, including the general capabilities and capacity of suppliers.
* Supplier Capabilities: It allows the buying firm to assess the technical, operational, and financial capabilities of suppliers before proceeding to more detailed procurement steps.
* Broader Scope: Unlike RFQs and RFPs, which are more specific, RFIs are open-ended and exploratory, making them ideal for gathering a wide range of information. References
* CIPS (Chartered Institute of Procurement & Supply) guidelines on supplier selection processes.