This document provides an overview of a proposal for supplier selection at Maxell Tohshin (Malaysia) Sdn. Bhd. It discusses the background of the company and industry. It identifies issues in the current procurement process related to lead time, price, quality, delivery, payment terms, rules and regulations, documentation, and service. The research aims to determine the key factors in Maxell Tohshin's supplier selection process and whether supplier size is a selection criterion. It will examine the supplier evaluation and selection methods used as well as negotiation and information elicitation approaches.
The document discusses supplier performance evaluation methods for SMEs in Macedonia. It covers several key areas:
1. Supplier evaluation methods including categorical, weighted-point, and cost-ratio models. The weighted-point model is most commonly used.
2. Key performance indicators from literature including Dickson and Weber's criteria which focus on quality, delivery, price and other factors.
3. Approaches to evaluate suppliers such as linear weighting, total cost of ownership, and statistical models. Linear weighting is most popular.
4. The study's methodology used grounded theory and questionnaires. Findings showed manufacturing is the largest industry, evaluation processes are common, and key criteria include price, quality and delivery
This document discusses the importance of supplier selection and outlines the supplier selection process. It begins by explaining that selecting suppliers is now as important as developing new products. It then describes the typical supplier selection process, which includes evaluating needs, gathering a pool of vendors, interviewing vendors, and selecting an evaluation method. Next, it outlines common supplier evaluation criteria like financial health, expertise, and operational performance. Finally, it discusses specific evaluation methods like the categorical method, weighted point method, and cost-ratio method. It concludes that determining clear requirements and communicating them to vendors allows for an objective supplier selection decision.
This document outlines a six step process for selecting suppliers that ensures quality and safety:
1. Identify potential suppliers and define selection criteria through stakeholder input. Consider total cost of ownership, not just price.
2. Develop an audit program to continuously monitor suppliers' performance on quality, compliance, and critical metrics.
3. Use self-assessments and metrics to identify gaps and track suppliers' understanding of meaningful measurements.
4. Certify top suppliers by establishing criteria for sustained successful performance.
5. Develop strategic partnerships with suppliers through open communication and mutual understanding of production needs.
6. Implement a supplier quality management program to ensure high quality products for consumers through reliable supplier relationships
The document discusses supplier performance evaluation. It begins by providing background on the importance of suppliers and purchasing to companies. Supplier performance significantly impacts customer firms' efficiency and effectiveness. Formal supplier evaluation programs are important to ensure adequate supplier performance. Research shows large companies are more likely to use formal evaluation systems compared to small companies. The document then discusses aspects of supplier performance evaluation, including product quality, delivery, costs, capacity, and information sharing. It provides an overview of literature on supplier evaluation criteria and the importance of various criteria over time.
This document discusses supplier selection and development. It emphasizes the strategic importance of selecting good suppliers and developing partnerships. Developing suppliers can help ensure they meet needs for quality, cost, and technical support. The document provides sources for finding supplier information and evaluating suppliers. It also discusses the benefits of partnerships with suppliers, including cost reductions, quality improvements, and flexibility. Supplier management involves ensuring suppliers perform as required and identifying options if they cannot meet future demands.
Methods for selecting suppliers in international procurementAnkit
This document outlines various methods for selecting suppliers in international procurement. It discusses evaluating suppliers based on their ability to meet quality, quantity, delivery and other objectives. Potential supplier sources are identified through online directories, trade publications, sales representatives and more. Suppliers are then evaluated on their technical capabilities, financial stability, and ability to meet requirements now and in the future. Evaluation methods range from informal discussions to formal weighted point systems assessing factors like delivery performance. Challenges in evaluating suppliers include determining strategic importance and availability of alternatives. Sourcing must be linked to organizational strategy addressing issues like single vs multiple sourcing and domestic vs international suppliers.
The document discusses supplier performance evaluation methods for SMEs in Macedonia. It covers several key areas:
1. Supplier evaluation methods including categorical, weighted-point, and cost-ratio models. The weighted-point model is most commonly used.
2. Key performance indicators from literature including Dickson and Weber's criteria which focus on quality, delivery, price and other factors.
3. Approaches to evaluate suppliers such as linear weighting, total cost of ownership, and statistical models. Linear weighting is most popular.
4. The study's methodology used grounded theory and questionnaires. Findings showed manufacturing is the largest industry, evaluation processes are common, and key criteria include price, quality and delivery
This document discusses the importance of supplier selection and outlines the supplier selection process. It begins by explaining that selecting suppliers is now as important as developing new products. It then describes the typical supplier selection process, which includes evaluating needs, gathering a pool of vendors, interviewing vendors, and selecting an evaluation method. Next, it outlines common supplier evaluation criteria like financial health, expertise, and operational performance. Finally, it discusses specific evaluation methods like the categorical method, weighted point method, and cost-ratio method. It concludes that determining clear requirements and communicating them to vendors allows for an objective supplier selection decision.
This document outlines a six step process for selecting suppliers that ensures quality and safety:
1. Identify potential suppliers and define selection criteria through stakeholder input. Consider total cost of ownership, not just price.
2. Develop an audit program to continuously monitor suppliers' performance on quality, compliance, and critical metrics.
3. Use self-assessments and metrics to identify gaps and track suppliers' understanding of meaningful measurements.
4. Certify top suppliers by establishing criteria for sustained successful performance.
5. Develop strategic partnerships with suppliers through open communication and mutual understanding of production needs.
6. Implement a supplier quality management program to ensure high quality products for consumers through reliable supplier relationships
The document discusses supplier performance evaluation. It begins by providing background on the importance of suppliers and purchasing to companies. Supplier performance significantly impacts customer firms' efficiency and effectiveness. Formal supplier evaluation programs are important to ensure adequate supplier performance. Research shows large companies are more likely to use formal evaluation systems compared to small companies. The document then discusses aspects of supplier performance evaluation, including product quality, delivery, costs, capacity, and information sharing. It provides an overview of literature on supplier evaluation criteria and the importance of various criteria over time.
This document discusses supplier selection and development. It emphasizes the strategic importance of selecting good suppliers and developing partnerships. Developing suppliers can help ensure they meet needs for quality, cost, and technical support. The document provides sources for finding supplier information and evaluating suppliers. It also discusses the benefits of partnerships with suppliers, including cost reductions, quality improvements, and flexibility. Supplier management involves ensuring suppliers perform as required and identifying options if they cannot meet future demands.
Methods for selecting suppliers in international procurementAnkit
This document outlines various methods for selecting suppliers in international procurement. It discusses evaluating suppliers based on their ability to meet quality, quantity, delivery and other objectives. Potential supplier sources are identified through online directories, trade publications, sales representatives and more. Suppliers are then evaluated on their technical capabilities, financial stability, and ability to meet requirements now and in the future. Evaluation methods range from informal discussions to formal weighted point systems assessing factors like delivery performance. Challenges in evaluating suppliers include determining strategic importance and availability of alternatives. Sourcing must be linked to organizational strategy addressing issues like single vs multiple sourcing and domestic vs international suppliers.
The document is a case study report analyzing the supplier evaluation and selection process for Fastraq Technology Corporation (FTC). FTC is expanding into assembling personal computers and needs to outsource DVD drives. Four potential suppliers were evaluated on price, quality, capacity, financials and total cost. D-Drive Systems was recommended as they had the lowest costs and risks despite a higher quoted price. D-Drive offered the lowest lead times, highest quality and was in close proximity to FTC. Selecting D-Drive would allow FTC to launch their new PC line on schedule and minimize supply chain risks.
This presentation describes the ASQ QMD Globalization & Supply Chain Technical Committee efforts to inventory existing supplier scorecards for benchmarking and to support its efforts to create supplier scorecard standards
johncachat@hotmail.com
www.peproso.com
This document discusses developing a balanced supplier scorecard. It begins with an introduction to supplier scorecards and balanced scorecards. It then reviews literature on supplier evaluation models and criteria. Two case studies on Honeywell and Tara Aerospace's supplier scorecards are presented. The document proposes a balanced supplier scorecard with four perspectives: financial, customer, internal processes, and innovation/learning. It identifies shortcomings in current scorecards and suggests enhancements like including environmental and social factors. The conclusion emphasizes that effective scorecards should be flexible, updated in real-time, cost-based, and benchmarked.
shahank soni vendor evaluation presentationAkash Maurya
The document discusses the importance of the vendor selection process for organizations. It outlines the key steps in the supplier selection process, including evaluating needs, gathering a pool of vendors, interviewing vendors, and selecting an evaluation method. Several supplier evaluation criteria are examined, such as financial health, expertise, and risk factors. Finally, the document describes different supplier evaluation methods like the categorical method, weighted point method, and cost-ratio method and provides an example problem demonstrating the weighted point method.
This document discusses supplier evaluation and selection. It outlines the process which includes recognizing the need for selection, identifying requirements, determining a sourcing strategy, identifying potential suppliers, limiting the selection pool, evaluating and selecting a supplier. Key aspects of evaluation include management capability, cost, quality, delivery, sustainability, financial stability and e-commerce capability. Tools for evaluation include mapping current processes, integrating with customers, using a supplier data warehouse, utilizing third parties, and developing a preferred supplier list. The process concludes by identifying evaluation categories, assigning weights, defining a scoring system, directly evaluating suppliers, reviewing results, and continuously improving supplier performance.
Vendor development in pharmaceutical industryshikha singh
This document discusses vendor development and evaluation procedures. It explains that vendor development involves identifying, developing, and evaluating prospective suppliers to ensure materials are procured at the right quality, quantity, price, and time. The key steps include vendor evaluation, rating vendors based on quality, delivery, price, and time performance, maintaining an approved vendor list, and certifying vendors. Periodic re-evaluation and monitoring of current suppliers is important for effective vendor management.
The document discusses supplier evaluation and selection. It provides an overview of the supplier evaluation and selection process, key criteria for evaluating suppliers, and developing surveys to aid in selection. Critical issues in supplier selection are also addressed. The presentation covers developing a multi-step process for evaluating suppliers on criteria like quality, cost, management capabilities, financial stability, and long-term relationship potential to select suppliers that minimize risk and maximize value.
This document discusses various aspects of vendor development including:
1. It defines what a vendor is and outlines the stages of vendor development - survey, inquiry, negotiation/selection, and experience/evaluation.
2. The survey stage involves collecting information on potential vendors from sources like trade directories, journals, phone directories, supplier catalogs, and salespeople.
3. The inquiry stage involves a detailed analysis of potential suppliers based on factors like facilities, financial stability, reputation, and location. Shortlisted suppliers are considered for negotiation.
4. Various buying techniques for materials procurement are discussed like quotations, tenders, negotiations, and discounts. Vendor performance is also evaluated using methods like categorical, weighted point,
Onicra Credit Rating Agency provides vendor rating and management services to help companies evaluate, monitor, and manage their vendor base. This presentation outlines Onicra's vendor rating methodology which comprehensively assesses vendors across several parameters including promoter profile, group details, managerial dynamics, financial performance, operations, quality, and more. The goal is to help clients identify risks, benchmark vendors, and select the right partners through an objective, data-driven process. Onicra's ratings also benefit vendors by enhancing their acceptability and access to financing.
Training Slides of Supplier Assessment and Performance Measurement, discussing the importance of Suppliers.
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
Effective Supplier Selection - Boeing 787Uyoyo Edosio
The document discusses Boeing's supplier selection process for the 787 Dreamliner aircraft. It describes the key stages of an effective supplier selection process, including problem definition, criteria formulation, qualification, and final selection. Boeing's global selection strategy involved choosing suppliers from around the world, creating some communication and coordination challenges. While this strategy reduced costs, it also introduced risks from non-uniform technical specifications and reliance on international suppliers. Overall, the case study illustrates how following best practices in supplier selection, while also considering implementation challenges, can help large manufacturers like Boeing develop complex global supply chains.
A vendor should only be added to an approved vendor list after careful consideration so that materials are received on time, at competitive prices, and without issues. It is important to have cooperative relationships with vendors as they provide needed materials and services at reasonable costs and can help in emergencies. When selecting vendors, factors like product range, location, financial stability, technical competence, market reputation, and pricing should be evaluated. Maintaining an approved vendor list helps ensure satisfactory performance and increases competition during the bidding process.
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
- The document discusses managing supplier performance through scorecards and key performance indicators (KPIs). It provides examples of typical scorecard components like delivery, quality, and qualitative measures.
- Scorecards aim to drive continuous improvement across the supply chain through monitoring KPIs. While good for transparency and improvement, scorecards have limits in quickly replacing underperforming suppliers.
- The discussion includes questions from the audience about supplier performance management technology.
Creating an Approved Supplier Program as a Prerequisite for a Successful HACC...TraceGains
If you have any questions or comments, please send them to connect@tracegains.com. We look forward to hearing from you.
Meeting Description:
Hazards come from two places; we add them or we receive them from our suppliers.
What should we expect from an effective supplier management program? Who is ultimately responsible for the safety of the products & materials received from our suppliers? How confident are we when we justify the control of a hazard as being through our approved supplier program? What percentage of recalls is traced to supplier issues?
HACCP requires that you:
-Identify those suppliers critical to food safety and quality
-Perform a hazard assessment and define the hazards
-Identify the potential risk and significance of the hazard
-Justify our decision based on facts, scientific information and historical data
Learn how to use your existing supplier data to:
-Automatically manage supplier compliance issues
-Continuously improve supplier performance
-Better manage supplier audits
Presenters:
Debby Newslow, President, D.L. Newslow & Associates, Inc.
Presentation: Prerequisite requirement programs for successful supplier management
Gary Nowacki, CEO, TraceGains
Presentation: Automating supplier document, risk, and compliance management
operations management(vendor selection and rating)POOJA UDAYAN
The document discusses vendor selection and rating. Vendors are companies that sell goods or services and are part of the supply chain. Vendor selection is an important purchasing decision made based on factors like price, quality, delivery, production facilities, financial position, and performance history. Vendor rating evaluates and approves potential vendors through a quantitative assessment of their performance in areas such as delivery, quality, and price. There are three main methods for vendor rating: the categorical method which uses subjective evaluations, the weighted point method which allocates points based on factors, and the cost ratio method which calculates ratios based on procurement costs.
Selection of Supplier by Using Saw and Vikor MethodsIJERA Editor
Now a days, Lean manufacturing becomes a key strategy for global competition. In this environment the most important process is the efficient selection of suppliers. In any organization various criteria such as quality, cost, location etc are used for the selection of supplier which plays a vital role in the industry. In the present work multi criteria decision making (MCDM) methods are used such as SAW method and VIKOR method. It is used to select the best supplier for implementing the spring manufacturing industry. Choice of the efficient supplier could be a complicated and is a complex problem and this draw back associate degreed a key success for an organization. In this paper linguistic fuzzy data is used to search out the ratings and weights and also the introduced methodologies employed to pick the efficient supplier
Success in supply begins with the right choice of suppliers and in the long run is directly related to how suppliers are managed, because suppliers have a significant impact on the success or failure of a company. Multi-criteria decisions are approaches that deal with ranking and selecting one or more suppliers from a set of suppliers. Multi-criteria decisions provide an effective framework for comparing suppliers based on the evaluation of different criteria. The present research is applied based on the purpose and descriptive-survey based on the nature and method of the research. In the present study, two library and field methods have been used to collect information. According to the objectives of this study, suppliers will be evaluated using two methods of fuzzy hierarchical analysis with D-numbers. In order to better understand these two methods, a case study is presented in which suppliers are ranked using two methods and then the results are compared with each other. For manufacturing companies, 4 categories of parts were considered and based on the classification, the suppliers of the manufacturing company were evaluated and analyzed. In the results of suppliers of type A and B components in hierarchical analysis, D and fuzzy methods have many differences in the evaluation and ranking of suppliers, and this shows the lack of expectations of experts in D and fuzzy analysis. On the other hand, in type C and D components, the classification and ranking of suppliers have been matched in two ways and shows that the opinions in the evaluation of these suppliers are the same.
The document is a case study report analyzing the supplier evaluation and selection process for Fastraq Technology Corporation (FTC). FTC is expanding into assembling personal computers and needs to outsource DVD drives. Four potential suppliers were evaluated on price, quality, capacity, financials and total cost. D-Drive Systems was recommended as they had the lowest costs and risks despite a higher quoted price. D-Drive offered the lowest lead times, highest quality and was in close proximity to FTC. Selecting D-Drive would allow FTC to launch their new PC line on schedule and minimize supply chain risks.
This presentation describes the ASQ QMD Globalization & Supply Chain Technical Committee efforts to inventory existing supplier scorecards for benchmarking and to support its efforts to create supplier scorecard standards
johncachat@hotmail.com
www.peproso.com
This document discusses developing a balanced supplier scorecard. It begins with an introduction to supplier scorecards and balanced scorecards. It then reviews literature on supplier evaluation models and criteria. Two case studies on Honeywell and Tara Aerospace's supplier scorecards are presented. The document proposes a balanced supplier scorecard with four perspectives: financial, customer, internal processes, and innovation/learning. It identifies shortcomings in current scorecards and suggests enhancements like including environmental and social factors. The conclusion emphasizes that effective scorecards should be flexible, updated in real-time, cost-based, and benchmarked.
shahank soni vendor evaluation presentationAkash Maurya
The document discusses the importance of the vendor selection process for organizations. It outlines the key steps in the supplier selection process, including evaluating needs, gathering a pool of vendors, interviewing vendors, and selecting an evaluation method. Several supplier evaluation criteria are examined, such as financial health, expertise, and risk factors. Finally, the document describes different supplier evaluation methods like the categorical method, weighted point method, and cost-ratio method and provides an example problem demonstrating the weighted point method.
This document discusses supplier evaluation and selection. It outlines the process which includes recognizing the need for selection, identifying requirements, determining a sourcing strategy, identifying potential suppliers, limiting the selection pool, evaluating and selecting a supplier. Key aspects of evaluation include management capability, cost, quality, delivery, sustainability, financial stability and e-commerce capability. Tools for evaluation include mapping current processes, integrating with customers, using a supplier data warehouse, utilizing third parties, and developing a preferred supplier list. The process concludes by identifying evaluation categories, assigning weights, defining a scoring system, directly evaluating suppliers, reviewing results, and continuously improving supplier performance.
Vendor development in pharmaceutical industryshikha singh
This document discusses vendor development and evaluation procedures. It explains that vendor development involves identifying, developing, and evaluating prospective suppliers to ensure materials are procured at the right quality, quantity, price, and time. The key steps include vendor evaluation, rating vendors based on quality, delivery, price, and time performance, maintaining an approved vendor list, and certifying vendors. Periodic re-evaluation and monitoring of current suppliers is important for effective vendor management.
The document discusses supplier evaluation and selection. It provides an overview of the supplier evaluation and selection process, key criteria for evaluating suppliers, and developing surveys to aid in selection. Critical issues in supplier selection are also addressed. The presentation covers developing a multi-step process for evaluating suppliers on criteria like quality, cost, management capabilities, financial stability, and long-term relationship potential to select suppliers that minimize risk and maximize value.
This document discusses various aspects of vendor development including:
1. It defines what a vendor is and outlines the stages of vendor development - survey, inquiry, negotiation/selection, and experience/evaluation.
2. The survey stage involves collecting information on potential vendors from sources like trade directories, journals, phone directories, supplier catalogs, and salespeople.
3. The inquiry stage involves a detailed analysis of potential suppliers based on factors like facilities, financial stability, reputation, and location. Shortlisted suppliers are considered for negotiation.
4. Various buying techniques for materials procurement are discussed like quotations, tenders, negotiations, and discounts. Vendor performance is also evaluated using methods like categorical, weighted point,
Onicra Credit Rating Agency provides vendor rating and management services to help companies evaluate, monitor, and manage their vendor base. This presentation outlines Onicra's vendor rating methodology which comprehensively assesses vendors across several parameters including promoter profile, group details, managerial dynamics, financial performance, operations, quality, and more. The goal is to help clients identify risks, benchmark vendors, and select the right partners through an objective, data-driven process. Onicra's ratings also benefit vendors by enhancing their acceptability and access to financing.
Training Slides of Supplier Assessment and Performance Measurement, discussing the importance of Suppliers.
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
Effective Supplier Selection - Boeing 787Uyoyo Edosio
The document discusses Boeing's supplier selection process for the 787 Dreamliner aircraft. It describes the key stages of an effective supplier selection process, including problem definition, criteria formulation, qualification, and final selection. Boeing's global selection strategy involved choosing suppliers from around the world, creating some communication and coordination challenges. While this strategy reduced costs, it also introduced risks from non-uniform technical specifications and reliance on international suppliers. Overall, the case study illustrates how following best practices in supplier selection, while also considering implementation challenges, can help large manufacturers like Boeing develop complex global supply chains.
A vendor should only be added to an approved vendor list after careful consideration so that materials are received on time, at competitive prices, and without issues. It is important to have cooperative relationships with vendors as they provide needed materials and services at reasonable costs and can help in emergencies. When selecting vendors, factors like product range, location, financial stability, technical competence, market reputation, and pricing should be evaluated. Maintaining an approved vendor list helps ensure satisfactory performance and increases competition during the bidding process.
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
- The document discusses managing supplier performance through scorecards and key performance indicators (KPIs). It provides examples of typical scorecard components like delivery, quality, and qualitative measures.
- Scorecards aim to drive continuous improvement across the supply chain through monitoring KPIs. While good for transparency and improvement, scorecards have limits in quickly replacing underperforming suppliers.
- The discussion includes questions from the audience about supplier performance management technology.
Creating an Approved Supplier Program as a Prerequisite for a Successful HACC...TraceGains
If you have any questions or comments, please send them to connect@tracegains.com. We look forward to hearing from you.
Meeting Description:
Hazards come from two places; we add them or we receive them from our suppliers.
What should we expect from an effective supplier management program? Who is ultimately responsible for the safety of the products & materials received from our suppliers? How confident are we when we justify the control of a hazard as being through our approved supplier program? What percentage of recalls is traced to supplier issues?
HACCP requires that you:
-Identify those suppliers critical to food safety and quality
-Perform a hazard assessment and define the hazards
-Identify the potential risk and significance of the hazard
-Justify our decision based on facts, scientific information and historical data
Learn how to use your existing supplier data to:
-Automatically manage supplier compliance issues
-Continuously improve supplier performance
-Better manage supplier audits
Presenters:
Debby Newslow, President, D.L. Newslow & Associates, Inc.
Presentation: Prerequisite requirement programs for successful supplier management
Gary Nowacki, CEO, TraceGains
Presentation: Automating supplier document, risk, and compliance management
operations management(vendor selection and rating)POOJA UDAYAN
The document discusses vendor selection and rating. Vendors are companies that sell goods or services and are part of the supply chain. Vendor selection is an important purchasing decision made based on factors like price, quality, delivery, production facilities, financial position, and performance history. Vendor rating evaluates and approves potential vendors through a quantitative assessment of their performance in areas such as delivery, quality, and price. There are three main methods for vendor rating: the categorical method which uses subjective evaluations, the weighted point method which allocates points based on factors, and the cost ratio method which calculates ratios based on procurement costs.
Selection of Supplier by Using Saw and Vikor MethodsIJERA Editor
Now a days, Lean manufacturing becomes a key strategy for global competition. In this environment the most important process is the efficient selection of suppliers. In any organization various criteria such as quality, cost, location etc are used for the selection of supplier which plays a vital role in the industry. In the present work multi criteria decision making (MCDM) methods are used such as SAW method and VIKOR method. It is used to select the best supplier for implementing the spring manufacturing industry. Choice of the efficient supplier could be a complicated and is a complex problem and this draw back associate degreed a key success for an organization. In this paper linguistic fuzzy data is used to search out the ratings and weights and also the introduced methodologies employed to pick the efficient supplier
Success in supply begins with the right choice of suppliers and in the long run is directly related to how suppliers are managed, because suppliers have a significant impact on the success or failure of a company. Multi-criteria decisions are approaches that deal with ranking and selecting one or more suppliers from a set of suppliers. Multi-criteria decisions provide an effective framework for comparing suppliers based on the evaluation of different criteria. The present research is applied based on the purpose and descriptive-survey based on the nature and method of the research. In the present study, two library and field methods have been used to collect information. According to the objectives of this study, suppliers will be evaluated using two methods of fuzzy hierarchical analysis with D-numbers. In order to better understand these two methods, a case study is presented in which suppliers are ranked using two methods and then the results are compared with each other. For manufacturing companies, 4 categories of parts were considered and based on the classification, the suppliers of the manufacturing company were evaluated and analyzed. In the results of suppliers of type A and B components in hierarchical analysis, D and fuzzy methods have many differences in the evaluation and ranking of suppliers, and this shows the lack of expectations of experts in D and fuzzy analysis. On the other hand, in type C and D components, the classification and ranking of suppliers have been matched in two ways and shows that the opinions in the evaluation of these suppliers are the same.
Relationships among Supplier Selection Criteria using Interpretive Structural...inventionjournals
International Journal of Engineering and Science Invention (IJESI) is an international journal intended for professionals and researchers in all fields of computer science and electronics. IJESI publishes research articles and reviews within the whole field Engineering Science and Technology, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Supplier Selection and Order Allocation Models in Supply Chain Management: A ...IJERA Editor
Supplier selection decisions are an important component of production and logistics management for many
firms. Such decisions entail the selection of individual suppliers to employ and the determination of order
quantities to be placed with the selected suppliers. This paper reviews supplier selection and order allocation
models based on an extensive search in the literature (170 paper during 2000-2016) and tries to show their
contribution to supply chain management. After discussing different methods and their applications, the most
prevalently used approaches and criteria are presented. In the second step, different attributes of these papers are
defined and finally issues for future research are recommended
This document summarizes a study on supply chain management in the textile industry and a supplier selection model using analytical hierarchy process. It discusses key factors for a successful supply chain in the globalized textile industry. The study presents an AHP model that apparel companies can use to select suppliers and develop a supplier relationship management strategy. The model identifies strategic priorities and weights to select suppliers that align with the company's strategy. The outcome and implications of the model for implementation are also discussed.
This document provides an abstract for a dissertation that evaluates criteria used in supplier selection processes. The dissertation was submitted by Alan Kurien Punnoose to the University of Bath in partial fulfillment of an MSc in Management with Operations Management. It contains 14,545 words. The dissertation involves a qualitative case study of the supplier selection process at Aston Martin, a luxury car manufacturer. It uses interviews to collect data and evaluates Aston Martin's process using the Analytic Hierarchy Process (AHP) methodology for decision making. The dissertation aims to critically evaluate criteria for supplier selection and compare Aston Martin's process to the AHP methodology.
Building a Proposed Model for Suppliers' Selection using Multi-Criteria ApproachIRJET Journal
This document presents a proposed model for supplier selection using the multi-criteria decision making approach of analytic hierarchy process (AHP). The study aims to evaluate the relative importance of supplier selection criteria (quality, cost, delivery, flexibility) from the perspective of construction company managers. A survey was conducted of 50 managers who provided pairwise comparisons of criteria. The AHP approach structures the problem, identifies selection criteria and supplier alternatives, and determines the relative weights of criteria. Preliminary results found that cost has the highest importance as a supplier selection criterion, followed by delivery and flexibility based on manager responses. The proposed model could provide an objective, systematic approach to supplier selection compared to current subjective practices.
Designing a Computational tool for Supplier Selection using Analytical Hierar...Dr. Soumendra Kumar Patra
This document discusses the development of a computational tool using analytical hierarchy process (AHP) for supplier selection. It presents a literature review on supplier selection criteria and models. The study aims to identify factors that influence supplier selection for manufacturing industries in Bhubaneswar, India. A questionnaire was used to collect data on important selection criteria from purchasing managers. An AHP model was developed to evaluate and prioritize suppliers based on criteria such as reputation, efficiency, flexibility, growth rate, strength, and responsiveness.
https://utilitasmathematica.com/index.php/Index
Our Journal has recently transitioned to becoming a fully open-access journal. This transition marks a significant shift in the landscape of academic publishing, aiming to provide numerous benefits to both authors and readers. Open access has the potential to democratize knowledge, enhance research impact, and foster greater collaboration within the academic community.
https://utilitasmathematica.com/index.php/Index
Our Journal is now readily available to researchers, educators, policymakers, and the general public worldwide. This broader access facilitates interdisciplinary research and real-world applications of mathematical and statistical knowledge. It’s Journal as an open-access publication, fostering collaboration, innovation, and the democratization of mathematical and statistical knowledge.
The leadership of the Utilitas Mathematica Journal commits to strengthening our professional community by making it more just, equitable, diverse, and inclusive. We affirm that our mission, Promote the Practice and Profession of Statistics, can be realized only by fully embracing justice, equity, diversity, and inclusivity in all of our operations. Published in association with the Utilitas Mathematica Academy. This journal is the official publication of the Utilitas Mathematica Academy, Canada. It enjoys a good reputation and popularity at the international level in terms of research papers and distribution worldwide.
Our journal has to a fully open-access format is a significant step toward advancing the principles of open science and equitable access to knowledge. However, this transition also brings challenges, such as ensuring sustainable funding models and maintaining rigorous peer-review standards.
A Review Of Multi-Criteria Decision Making Techniques For Supplier Evaluation...Steven Wallach
This document provides a review of multi-criteria decision making (MCDM) techniques that have been used for supplier evaluation and selection, as described in academic literature from 2000 to 2011. It summarizes several approaches that have been proposed, including data envelopment analysis (DEA), mathematical programming models (linear programming, integer linear programming, integer non-linear programming, goal programming, and multi-objective programming), and analytic hierarchy process (AHP). For each approach, it provides examples of studies that have applied the approach and discusses the objectives, inputs, outputs, and models used. The review aims to identify the most prevalent approaches and discuss future directions for developing optimal solutions.
This document discusses the impact of supplier relationship management (SRM) on organizational performance. It begins with an introduction that outlines the objectives and significance of studying how effectively managing supplier relationships can affect a company's performance. A literature review identifies that SRM involves strategic partnerships with suppliers and can help reduce risks and improve business activities. The study aims to evaluate how SRM influences organizational goals. It will use surveys and statistical analysis to explore the relationship between supplier development, organizational performance, and other determinants of effective supplier management.
Factors that Influence the Supplier Selection of Manufacturing BusinessesQUESTJOURNAL
ABSTRACT : The objective of this study is to find out the factors that influence businesses in manufacturing industry while selecting suppliers. The data used in the study were obtained from 80 small and medium sized enterprises in Samsun organized industrial site and small industrial areas by using face-to-face questionnaire method. KMO and Barlett’s test were used to find out whether the data set used in the study was suitable for factor analysis. According to the results, KMO and Barlett’s test results (0.761) show that the sample size is sufficient for factor analysis. Factor analysis gave a 4 factor structure that explained 84.48% of the total variance. The names of these factors and their rates of explaining the total variance were quality 33.08%, delivery 20.29%, price 18.72% and criteria about the supplier 12.39%, respectively. Cronbach’s Alpha reliability coefficients of these four factors and their sub-components were 0.978, 0.967, 0.920 and 0.602, respectively. As a conclusion, it was found that the businesses in manufacturing industry placed great importance on the quality and delivery of the product provided by the supplier. In addition, manufacturing businesses aim to supply quality products from the supplier with the lowest cost within the same period of time in accordance with their objectives.
Selection of Best Supplier in Furniture Manufacturing Company by Using Analyt...IJERA Editor
The selection of supplier is one of the most critical decisions in the design and development of a successful production environment. In this study, a user friendly decision support system is proposed for supplier selection. This system guides the decision maker in selecting proper supplier via effective algorithms, such as the Analytic Hierarchy process (AHP) Cost analysis helps the user evaluate the results based on economical considerations. Selection of supplier is a time consuming process which needs extensive data exploitation. The process of supplier selection is a multi- criteria decision-making problem with conflicting and diverse objectives. In this work a systematic methodology is presented under the consideration of multiple factors and objectives that are witnessed to be crucial to the construction process. The model includes building an analytic hierarchy structure with a tree of hierarchical criteria and alternatives to ease the decision-making.
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Supplier selection (abr)
1. Master of Business Administration [BM 771]
Universiti Teknologi MARA, Bandaraya Melaka
PROPOSAL FOR ABR
SUPPLIER SELECTION: Maxell Tohshin (Malaysia) Sdn. Bhd.
PREPARED BY:
Name : Siti Suryati Bt Bahari
Name : Noorhafizah Bt Badalehshah
2. Table of content Pages
Abstract 4
CHAPTER ONE- INTRODUCTION
1.1 Background of the industry 5
1.2 Statement of the problem 6
1.3 Objective of the research 8
1.4 Scope of study 9
1.5 Significant of the study 9
1.6 Limitation of the study 9
CHAPTER TWO – LITERATURE RIVIEW
2.1 Background of the research areas 10
2.2 Concept and definition of key components of the research area 10
2.3 Theoretical framework 11
2.4 Summarize to conclude 13
CHAPTER THREE- RESEARCH DESIGN AND METHODOLOGY
3.1 The research design 14
3.2 The population sample 14
3.3 Sampling technique 15
3.4 The fieldwork and data collection method 16
2
3. 3.5 The data analysis 16
CHAPTER FOUR- OVERVIEW OF FUTURE APPLICATION 17
REFERENCES 18
3
4. Abstract
Supply chain management and supplier selection have become the fastest growing
areas of management especially in the last few years. Although study in the area started in
1960s, it is in the 90s that scholars gained much interest in the area of supplier selection.
The reason is that with heightened global competition that has reduced the profit margins of
most companies, hence cost cutting has become the option and is being focused in logistics
which has become the single largest and most important activity of most firms, both in the for
profit and not-for-profit sectors. As such, quite a significant portion of organizations’ budgets
is spent in these activities. Supplier selection in particular is crucial in management of a
supply chain. The decision is one of the most fundamental and important decisions made by
buyers and organizations. This is because supplier selection and management can be
applied to a variety of suppliers throughout a products’ life cycle from initial raw materials
acquisition to end-of-life service providers (Bai and Sarkis, 2009).
Supplier selection is the process by which firms identify, evaluate and contract with
suppliers. The supplier selection process deploys a tremendous amount of a firm’s financial
resources. In return, firms expect significant benefits from contracting with suppliers offering
high value. This research is to identify selection process: Identifying suppliers, soliciting
information from suppliers, setting contract terms, negotiating with suppliers and evaluating
suppliers. The researchers want to highlights why each step is important, how the steps are
interrelated and how the resulting complexity provides fertile ground for research.
4
5. CHAPTER ONE- INTRODUCTION
1.1 Background of the industry
Maxell Tohshin (Malaysia) Sdn. Bhd. or “MTM” in short was formed with effective as at 1
January 2006 (an integrated of company between Maxell Electronics (M) Sdn. Bhd. &
Tohshin (M) Sdn). Subsidiary Hitachi Maxell Ltd., Japan a member of the Hitachi Group of
Companies. MTM started with the Plastic Injection Molding of components for camera parts,
Manufactures Optical Lenses, Processing Lens Coating and Assemblies of Micro-Camera
Lens Unit, Manufacturers the 3.5 inch Floppy Diskettes, Assembling and certifying DVD-
RAMs under the renowned name of Maxell and in addition to this. MTM also punches Disk
Sheets (cookies) for the 3.5 inch Floppy Diskettes. Registered office at Lot 1, Batu
Berendam free Trade Zone Phase III, Batu Berendam 75350 Melaka, Malaysia.
1.1.1 The concept of supplier selection and procurement
Supplier selection and evaluation have become one of the major topics in production and
operations management literature (Motwani et al., 1999).It is the process by which firms
identify, evaluate and contract with suppliers. The supplier selection is one part of the value
chain that is now considered to deploy tremendous amount of an organization’s resources
and for this reason, much is expected in terms of high value from suppliers (Beil,
2009).These are part of what is today called supply management in the supply chain
management function in an organization. Supply management refers to “the process of
identification, acquisition, access, positioning, and management of resources an
organization needs or potentially needs in the attainment of its strategic objectives” (Institute
of Supply Management). Weber et al. (1991) define supplier selection as the search for
potential providers where the providers are sorted (evaluated) into potential ad non potential
providers. Typical criteria for supplier selection could be price structure, delivery which
5
6. entails timeliness and cost, product and services quality. It is the ongoing process of
searching and evaluating process to find a supplier of essential goods and services required
in an organization for normal operations.
The term procurement is used in the place of purchasing however, and encompasses
activities of specifications and development, expediting, supplier quality control and some
logistic activities (Wisner,Tan,and Leong,2008).Some scholars have postulated that supply
management is today a mainstream value adding process that is viewed as most
strategic(Cousins,2005). The main objective of supplier selection process is to reduce
purchase risk, maximize overall value to the purchaser, and develop closeness and long-
term relationships between buyers and suppliers (Li et al., 1997 as cited in Tahriri, Osman,
Ali and Yusuff, 2008). According to Benyoucef et al (2003), supplier selection process is
continuous in order to upgrade the existing variety and typology of their product range. It is
necessitated by the fact that most products generally have short lifecycle of 3 to 4 years.
1.2 Statement of the problem
Two different aspects characterize the supplier selection problem:
The first aspect is the determination of the number of the suppliers and the mode of relations
with them. Considering the characteristics of the company, product and market, its strategic
plan can encourage a large number of suppliers or not. Today, we are involved in a “co-
operative logistic” environment. The company seeks a strong co-operation with its principal
suppliers. Indeed, a strong co-operation with high number of suppliers is very difficult to
manage. An area of current research focuses on the classification of components or parts or
process to externalise in order to establish a suitable relation with the suppliers of each
category. For example, the company can consider a relation of partnership or even a
strategic alliance with a supplier who provides a part or a component and with which it
wishes to have a durable co-operation. On the other hand, this company can have a
hierarchical relation and a significant number of suppliers for the standard parts in order to
establish a competition between them and thus to reduce the cost of purchasing. Second
6
7. aspect is the selection of the best suppliers among the existing alternatives. In this work, we
consider this aspect of the problem and thus we assume that the number of the suppliers to
be selected is already given.
Issue in MTM under Procurement Department with the vender that influence the team
to search and find the alternative supplier and involve with the supplier selection.
1) Lead time-
Some of the supplier required the lead time more than 3 month. This is because their
material incoming from the overseas take about 1-2 month and the production lead
time takes about 1 month (depends to the production plan from their side.
2) Price-
Prices based on the material itself and also the terms. Some of the prices based on
the exwork , DDU, FOB, CIF and others. Certain country the prices based on the
currency and exchange rate. Sometimes, MTM facing the un-flexible prices,
especially the commodity item.(wire, plastic, spare part and etc.)
3) Quality
The quality must be meet the MTM requirement. If there is any quality issue, MTM
will request the supplier to send the replacement, or send the man power to do
sorting at MTM. However, the supplier also request to return the lot, but due the MTM
located at the FTZ area, any incoming or outgoing must be apply the custom
exemption. Normally to get the approval, it will take about 2-3 days. If there is no
customs officer at the office, the application will drack until a week. The issue will be
happen when the supplier do not have stock to send out the replacement and
required the MTM to return ASAP, but due the requirement for the rules and
regulation, MTM alternative plan to proceed the line sorting.
4) Delivery/mode of transport
The delivery can divided with 3 normal types; by sea, air, courier, or land transport. If
by sea, each country does have their lead time.
5) Payment terms
7
8. Whether the 60 days or 30 days. Or even advance payment
6) Rules and regulation
Customs exemption, documentation requirement (K1, K2,K8 etc.)
7) Documentation
Invoices and delivery order. According to the standard info
8) Services and pic involvement
The service provided and the response of any comment or issue from the ‘window’.
1.3 Objective of the research
The first stream dominates the purchasing literature and identifies appropriate criteria and
methods supporting supplier evaluation. The primary goals are to help the buyer decide what
its objectives are, what dimensions to evaluate suppliers over, and how to evaluate suppliers
using these dimensions. The second stream assumes that the buyer knows what it wants
and has an existing methodology for evaluating suppliers. It focuses on decisions such as
what types of negotiation formats or contracts to employ, and how to elicit information that
suppliers may be reluctant to reveal.
1.3.1 Research questions
The research questions for the study shall be:
What are some of the factors that determine supplier selection in the procurement process in
Maxell Tohshin? Is the supplier size a criterion for selection as a supplier in the procurement
process by Maxell Tohshin? To what extent does quality of supplies determine the supplier
selection in the procurement process in the Maxell Tohshin? Is cost a factor in the selection
of suppliers by the Maxell Tohshin? What is the overall effect of bribery and connections in
the supplier selection decision Maxell Tohshin?
8
9. 1.4 Scope of Study
The focused on effectiveness and efficiency of selecting supplier selection method
determination of quality performance supplier selection criteria and the between supplier
selection techniques and quality performance of organization.
1.4.1 Geographical Scope
The study was conducted in Maxell Tohshin industries located on plot industries area Batu
Berendam, Melaka.
1.5 Significance of the Study
1. To contribute to the field of knowledge about supplier selection and quality
performance.
2. The research will benefit organization recognize the importance of supplier selection
in enhancing quality performance.
3. The study will provide organization with the various tools of supplier selection that
can enhance quality performance.
1.6 Limitations of the study
The researcher envisages a number of limitations such as the inability of the respondents to
adequately fill the questionnaires as required, the inadequacy of the research instrument to
capture all the required information, and failure of some respondents to fill the questionnaire,
and the inherent weakness in the research design.Also,the study is limited in that it only
focuses on Maxell Tohshin supplier selection determinants, yet there are many other
company that also rely on local suppliers. The findings in this study might not be adequate
representation of the supplier selection determinants in the Maxell Tohshin; hence the
results cannot be generalized to all.
9
10. CHAPTER TWO – LITERATURE RIVIEW
2.1 Background of the research areas
This chapter the principles and concepts that has been explore and brought out by various
authors in an existing literature on suppler selection and quality performance of organization
in Maxell Tohshin industries.The literature is reviewed under the following sub headings. The
supplier selection process, determinants of quality performance of organization, and the
relationship between suppliers selection technique and quality performance in Maxell
Tohshin industries.
2.2 Concept and definition of key components of the research area
Supplier selection criteria for a particular product or service category should be
defined by a “cross-functional” team of representatives from different sectors of your
organization. In a manufacturing company, for example, members of the team typically
would include representatives from purchasing, quality, engineering and production. Team
members should include personnel with technical/applications knowledge of the product or
service to be purchased, as well as members of the department that uses the purchased
item. With increasing significance of the purchasing function, purchasing decisions become
more important. As organisations become more dependent on suppliers the direct and
indirect consequences of poor decision-making become more severe. For example, in
industrial companies, purchasing’s share in the total turnover typically ranges between 50-
90% (Telgen, 1994), making decisions about purchasing strategies and operations primary
determinants of probability. In addition, several developments further complicate purchasing
decision-making. Globalisation of trade and the Internet enlarge a purchaser’s choice set.
Changing customer preferences require a broader and faster supplier selection. Public
procurement Public Procurement regulations demand more transparency in decision-
making. New organisational forms lead to the involvement of more decision-makers.
.
10
11. 2.3 Theoretical framework
Consumers buy products based on a combination of cost, quality, availability, maintainability,
and reputation factors. The companies along with their supply chains, which can provide
these desired things, will ultimately be successful (Wisner, J.et al, 2008).But when
confronted with risky purchase decisions, most firms consider first and foremost, sellers or
suppliers with proven track record with the firm are favoured as familiar suppliers help
reduce perceived risks (Hutt and Speh, 2009).
Quantitative approaches used in supplier selection range from simple linear weighting
models to complex mathematical programming models. Linear weighting models are
essentially scoring models which place a weight on subjectively a determined criterion and
provide a total score for each supplier. Mathematical programming models use linear
programming, mixed-integer programming and goal programming to determine supplier
selection (Chaundry et al. as cited in Wissenschaftsverlag, 2007).
According to Beil (2009) supplier selection assists organizations in identifying, evaluating
and contract with suppliers for strategic partnership. Organizations will only achieve their
sourcing objectives once they get the right suppliers who will deliver goods and services on
time. Weber et al (1993) considered supplier selection to be long term process and suggests
that suppliers should be evaluated based on core competences and strategic needs.
2.3.1 Empirical Review
Literature review shows that from empirical front, comprehensive efforts have been made to
develop decision methods and techniques for supplier selection. Weber et al(1991) reviewed
and classified 74 articles that appeared since 1966 with regard to particular criteria used in
supplier selection ( as cited in Mendoza, 2007).In these papers, what comes out as the
major supplier selection determinants include price, delivery, quality, and production capacity
and location. Holt presented a review of contractor evaluation and supplier section
methodologies such as multi-attribute analysis, multi-attribute utility theory, and cluster
11
12. analysis where he discusses applications of each of these techniques. Degraeve et al uses
the Total Cost of Ownership (TCO) as the framework for comparing supplier selection
models. But it is De Boer et al study that is comprehensive enough as it looks at supplier
selection literature by even classifying the existing literature in a framework. The framework
enumerates steps preceding supplier selection decision. These steps are, problem definition,
formulation of selection criteria, pre-qualification, and final selection. The other unique thing
about their analysis is the classification of supplier selection literature according to different
purchasing situations namely first time buys, modified re-buys, and straight
rebuys(Mendoza,2007).Yet, this analysis though comprehensive leaves crucial gaps as it
does not clearly state the supplier selection determinants, but instead dwells on the selection
procedures.
Dickinson (1966) in his pioneering work on supplier selection identified and ranked 23
supplier selection criteria as collected from a questionnaire given to purchasing agents.
Quality, delivery, and performance history rank top with net price ranking a distant sixth. This
seems to concur with previous studies, but one notable discrepancy is that price curiously
ranks lower than quality. Again, net price is deceptive as other related costs such as
packaging and freight cost could raise the total cost. Total cost covers everything hence
should be the one listed and not net cost. Ellram (1990) proposed three criteria for supplier
selection. These are: the financial statement of the supplier, organizational culture and
strategy of supplier, and the technological state of supplier.
Omar & Sim (2010) in a study on supplier selection criteria conducted on Malaysian
Manufacturing firms found that cost followed by quality ranked higher than any other
determinants. Delivery ranks third based on their analysis.
12
13. 2.4 Summarize to conclude
One of the highly ranked supplier selection determinants from the available literature is the
quality of supplies. Pioneering works of Dickinson (1966) which surveyed 300 commercial
organizations ranked quality as the highest determinant for supplier selection. Quality refers
to conformance to requirements or fit to use. Conformance quality is also viewed as absence
of defects (APICs, 1999).Since the early studies of 60s on supplier selection all through to
90s, quality has consistently ranked top among the various supplier selection determinants.
Purchasers would like to buy only those goods and services that are of high quality. The
other critical factor for supplier selection beside quality is delivery. Meeting delivery
deadlines is critical so as to avoid operations disruptions for lack of supplies. hoi(19960 as
cited in Cheraghi et al. delivery together with quality constitute what might be considered the
threshold criteria for supplier selection.
Performance history of a supplier is also a critical determinant in supplier selection as
literature adduces. In particular, for those goods and services that are of great value or
involving huge cost outlay, then the purchaser tends to go for that supplier whom they are
sure about their past performance. This is basically to reduce risks associated with failure of
unknown suppliers to deliver goods or execute their part of contract.
According to Weber et al. (1991) cost is one of the key determinants for supplier selection.
Cost of supplies like delivery and quality constitutes the traditional determinants of supplier
selection, also known as order qualifiers. Most organizations both in business and Non-
governmental organization world consider the lowest cost offer since the purchaser aims to
minimize on cost of procurement while trying to maximize on the quality and quantity of
purchases. Service factors such as after sales service, repairs capacities, change and
supply of parts, easy assessable, customer service, technical capacity, and warranty of the
product (Omar & Sim, 2010).For this reason, most purchasers tend to consider these service
factors capacity in a potential supplier. Any supplier with the capacities to provide these
services ultimately gets selected as a supplier to most organizations.
13
14. CHAPTER THREE- RESEARCH DESIGN AND METHODOLOGY
3.1 The research design
The sources used for study consisted of scientific refereed journals, textbooks and doctoral
dissertations. Publications in languages other than English and non-refereed professional
publications were not included. The search keys used were supplier selection, vendor
selection, purchasing decision-making.
Qualitative methods may include tools for visualising and analysing the decision-maker’s
perception of a problem situation and tools for brainstorming about possible (alternative)
solutions. The collection of quantitative methods comprises a wide variety of approaches.
Data mining techniques can be used to analyse similar decisions made in the past in order
to derive general patterns and decision rules that may subsequently be used to improve the
efficiency and effectiveness of future decisions.
Furthermore, we only included articles that report on a method or technique that specifically
aims at supporting a decision-maker in one or more of the four steps of the supplier
selection process. This implies that articles merely describing the supplier selection process
o the relevant criteria have not been included. Also, articles reporting on methods for
monitoring an existing supplier relationship were excluded.
3.2 The population sample
A population is the total collection of elements about which inferences are made and refers
to all possible cases which are of interest for a study (Sekaran, 2003).The target population
for the study is the 10 Maxell Tohshin department based in Batu Berendam, Melaka. The
study will target the chief procurement and logistics officers in these agencies as the unit of
analysis. These are selected because they are the ones tasked with the responsibility of
sourcing for suppliers of goods and services to their organizations.
14
15. 3.3 Sampling Technique
Sampling refers to the systematic selection of a limited number of elements out of a
theoretically specified population of elements. The rationale is to draw conclusions about the
entire population. According to Kothari (2004), the ultimate test of a sample design is how
well it represents the characteristics of the population it purports to. The reason for sampling
in this study is to lower cost, accessibility of study population and the greater speed of data
collection.
A sample size of 50% of the population will be taken to give a total sample of 9 Maxell
Tohshin department. This is informed by the principle that if the elements of a population are
quite similar, only a small sample is necessary to accurately portray the characteristics of
interest Stratified random sampling will be used where the sample size of 50% shall be taken
from each of the three categories (strata) of the population. Stratified random sampling will
be used because it ensures a greater statistical efficiency, and reduce sampling
error.Kothari(2003) supports random sampling as it satisfies the law of statistical regularity ‘if
a sample is chosen at random, on average it has the same characteristics and composition
as the population’.
Table 3.2: Sample Size
Target Population Sample Percentage Sample Units
Headquartered 2 50 1
Regional Offices 14 50 7
Others 2 50 1
Total 18 9
Source: Author (2012)
15
16. 3.4 The field of work and data collection method
The overall aim of the study is to establish the determinants of supplier selection among
international organizations, specifically the Maxell Tohshin in Batu Berendam Melaka. The
bulk of data collected will therefore be primary in nature. The questionnaire will be the main
instrument, alongside face to face interviews. The use of questionnaires for primary data
collection has been supported by many scholars among them; Mugenda (1999),and Peil
(1995).A questionnaire is easier to administer, less costly, and ensures greater depth of
response, according to Mugenda (1999).A questionnaire also helps capture factual
information effectively. For the purpose of this study, the questionnaire will be used for the
mainly economical, and appropriateness reasons. A pilot study shall be conducted using
questionnaires to be administered to respondents from four Maxell Tohshin departments.
Those questions that will not be clear or are ambiguous will be revised so as to collect the
desired information. A senior academic from the school of Business of University
Technology MARA will assess the validity and reliability of the instrument.
Research Procedure
The researcher will first obtain a letter of introduction from Universiti Teknologi Mara. The
letter will help in identification in the various Maxell Tohshin premises while approaching
respondents. The questionnaires shall be personally administered through drop and pick
method.
3.5 Data Analysis and Presentation
The statistical method used in this study is descriptive and inferential statistics. Data analysis
will be done using Statistical Package for Social Sciences computer software
(SPSS).Tables, pie charts and graphs will be used to present the results on various
variables in the study. Descriptive statistics such as mode, mean and median shall be used
to present the various characteristics for data sets after the descriptive analysis. For this kind
of study, descriptive analysis is the best and has been supported by such scholars as
Schindler (2001), and Crawford (1995).
16
17. CHAPTER FOUR: OVERVIEW OF POSSIBLE FUTURE APPLICATION
The previous section has made clear that support in the phase of problem definition is an
underdeveloped area in supplier selection since we did not come across any model in the
purchasing literature that pays attention to this important phase. Some approaches in the
operations research literature deal explicitly with problem definition but have thus far not
been used in the purchasing literature. We also identified three additional methods that
seem particularly suitable for supplier qualification phase. These three models are elucidated
in Table 4.
Table 4
Methods for supporting pre-qualification of supplier
Method Typical feature
Conjunctive screening
(Hwang and Yoon, 1981)
A supplier is acceptable if the supplier equal
or exceeds a minimum score on each
criterion
Disjunctive screening
(Hwang and Yoon, 1981)
A supplier is acceptable if the supplier at
least equals or exceeds a minimum score on
one criterion.
Lexicographical screening
(Hwang and Yoon, 1981)
Criteria are ranked in order of importance.
Suppliers are first evaluated on the most
important criterion. Suppliers that pass this
criterion are then evaluated on the second
criterion and so on.
REFERENCES
17
18. Bai, C. and Sarkis, J. (2009).Supplier selection and sustainability: A Grey Rough
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Beil, D. (2009).Supplier selection (unpublished research paper).Stephen M. Ross School of
Business. University of Michigan, Michigan, USA. Available at
www.personal.umich.edu/.../Supplier Selection_...
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Crawford, I. (1995).Marketing research and information systems. Rome: FAO.
Creswell, J.W. (2003).Research design: Qualitative, quantitative and mixedMethod
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Delfmann, W. and Wissing-horsten, K. (2007).Strategic supply chain design: Theory,
concepts and applications.
Ellram (1990).The supplier selection decisions in strategic partnerships. Journal
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Hutt, M.D., and Speh, T.W. (2009).Business marketing management: B2B(10th
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Mendoza, A. (2007).Effective methodologies for supplier selection and order Quantity
allocation (PHD thesis, The University of Michigan, Michigan.
Motwani, J. and Youssef, M. (1999). Supplier selection in developing countries: a model
development. Emerald, 10(13):154-162.
Mugenda, O.M & Mugenda, A.G. (1999).Research methods: Quantitative and
18
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