Supplier Selection Strategy of a Business Organization
Abstract:
In the present global, highly competitive, dynamic and
ever-growing market environment, Consumers have increasingly showed preference to
fast service delivery of excellent and high quality yet economical products. This
has led management of supply chain in Organizations to consider and adopt beneficial
supplier selection strategies as important to the success of an efficient Supply
Chain Management in Business Organizations. The supplier selection decision making
process involves multiple criteria problem which includes both qualitative and quantitative
factors. Sometimes a balance between the tangible and intangible factors is essential
in selecting the best supplier. This paper provides a picture of a number of Models
such as buying
center model of Kotler and Armstrong, buy Grid of Patrick, Robinson, Fari and
wind framework,
Webster and wind,
provide some techniques developed to deal with selecting and evaluating of Suppliers,
different selection methods concerning supplier selection are discussed, and the
advantages and disadvantages of selection methods with emphasis on the Analytic
Hierarchy Process (AHP) and Supplier selection, qualitative and quantitative criteria,
emerging issues of supplier selection and the solutions for these problems are summarized,
maximize supply security, make profit and reduce costs. It also recommended
that all business firms should constitute the buying center known as Decision Making
Unit (DMU) of the purchasing decision.
Keywords: Supplier selection, Analytic Hierarchy
Process (AHP), qualitative and quantitative criteria, Decision Making
Unit (DMU).
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