Studies have shown that the declining competitiveness of US firms is related to lower investment than foreign rivals in intangible investments such as supplier development. Studies also showed that half of the companies fail in supplier development efforts. Since supplier development is not successful every time when undertaken, it is essential to examine supplier development factors which can impact the success of supplier development. This thesis examines aspects associated with the success of supplier development strategies within a number of industrial sectors. The purpose of the study is to determine what factors are required to make the supplier development a success; furthermore it shows that some factors have more significant influence than others on supplier development. Data from the population of buyers was collected to test the extent of the relationship between significant factors and success of the supplier development process. Agreement was noted between dependencies of success of supplier development process on several factors. Recommendations to supply managers and purchasing managers are provided regarding upper management involvement, enhanced communication with suppliers, recognition of the suppliers and development of strategic processing instead of reactive processing.