BENEFITS OF VENDOR DEVELOPMENT PROGRAMME IN THE OIL AND GAS INDUSTRY: A CONCEPTUAL REVIEW

Abstract

Vendor Development Programmes (VDPs) are increasingly recognised as strategic mechanisms for strengthening buyer and supplier relationships, improving supply chain efficiency, and driving innovation. This study explores the benefits of VDPs within the oil and gas sector, an industry characterised by complex supply chains, stringent quality requirements, and high operational risks. The findings suggest that VDPs provide notable advantages to buyers, including enhanced cost control, assured supply reliability, and preferential treatment from suppliers. For suppliers, VDPs create opportunities for bilateral knowledge sharing, capability enhancement, reputational growth, and sustained business expansion. By fostering collaboration and long-term partnerships, VDPs demonstrate their potential to transform procurement practices into value driven and innovation focused processes, ultimately contributing to a more resilient and competitive oil and gas supply chain.