This document summarizes a student's final year project presentation on determining the key factors for supplier selection in the fast-moving consumer goods (FMCG) industry in Karachi, Pakistan. The student conducted a survey of 70 FMCG companies to identify which criteria were most important in selecting suppliers. The results of the survey found that delivery time, price, quality, geographical location, technology capability, and financial capability were the most critical factors, as they all had a mean importance rating above 4 out of 5. The conclusion is that delivery time, price, and quality are particularly important criteria for supplier selection in the FMCG industry.

1. By
ABID HUSSAIN
Reg. # 54622
Final Year Project Presentation

2. Determinants of Supplier Selection
(Sourcing) in FMCG Industry in Karachi
RESEARCH TOPIC

3. INTRODUCTION
•Firms have prior objective to reduce their cost and stock of
inventory
•Firms to consider purchasing function as strategic mean and
supportive function
•To provide right products/service at right place and with quality of
product with reasonable price
•best selected and trusted suppliers, industry can reduce cost and
its inventory
•Companies have a preference to contract and purchase from few
suppliers

4. For selection of best suppliers and
effective strategic sourcing, there
may be success and critical
factors (criterion). These factors
not only affect supply chain
performance but also company
succession…
PROBLEM OF STATEMENT

5. To determine the success
factors (criterion) for best
supplier selection in FMCG
industry in Karachi
OBJECTIVE

6. •What needs to be considered while selecting suppliers?
•How these factors effect supply chain management
performance?
•Does cost factor impacts directly in the firm’s success?
•Is there any relationship between quality of goods what
supplier delivered and profitability?
•What criteria of supplier selection are following in FMCGs?
•Does lead time factor increase effective of strategic sourcing?
RESEARCH BASED QUESTION

7. •Population : Around 700 companies
•Sample size : 70 companies
•Technique : Random sampling
•Instrument : i) Questionnaire
ii) Online
iii) Interviews
METHODOLOGY

8. •Software : SPSS
•Data : Primary
•Testing : i)Descriptive test
ii)Correlation test
iii)Mean
iv)Mode
DATA ANALYSIS

9. ANALYSIS OF DATA (cont.)

10. 0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Mean
70
70
55
70
69
65
60
50
Price
Quality
Service
Delivery Time
Geo. Location
Tech. Capability
Fin. Capability
Org & Mgmt
0 20 40 60 80
Mode
Price Quality Service Delivery Time
Location Technology Finance O&M
•51.4% Strongly
agreed
•47.1% agreed
•48.6% Strongly
agreed
•51.4% agreed
•74.3% Strongly
agreed
•25.7%
respondents
agreed
•55.7% strongly
agreed
•29 managers
greed
•38.6% strongly agreed
•42 respondents
(companies
•98% respondents 17.1% Strongly
agreed
17 companies
agreed
•62.9% Strongly
agreed
•37.1% agreed

11. CONCLUSION
•According to results from Descriptive, Mean and Mode
factors, like delivery time, price, quality, location, technological
and finance capability have mean of above 4, which defines
that these are very critical determinants for selection of
supplier (best supplier).
•Delivery time defines the standard of suppliers
•Price and Quality are most critical and effective criteria for
selection
•Location of supplier is probably important criteria in
emergency situation

12. •Price
•Quality
•Delivery Time
•Geographical Location
•Service
•Technology capability
RECOMMEDATIONS

13. THANK YOU!
Question Answers