Abstract

Advanced supplier selection: A hybrid multi-agent negotiation protocol supporting supply chain dyadic collaboration

Highlights

  • In the 21st century market, a high-performance supply chain management (SCM) is extremely important in order to maintain competitiveness and excellence

  • This paper proposes a novel form of supplier selection involving the supply chain dyad as the buyer and the suppliers as sellers

  • The proposed strategy is about including the customer company in the procedure of supplier negotiation. We argue that this might be more profitable than the classical method of supplier selection; it reduces uncertainty in SC, and in particular, increases customer satisfaction, which is a key leverage in SCs as previously mentioned

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Summary

Introduction

In the 21st century market, a high-performance supply chain management (SCM) is extremely important in order to maintain competitiveness and excellence. The literature reports two main problems that impact significantly on SCM: supplier selection, and collaboration inside the SC. When interests conflict during a supplier selection procedure, negotiation is necessary to attain mutual agreement. The buyer defines the product characteristics according to its customer, and the customer requirements indirectly lead the negotiations between the buyer and the suppliers. A novel business relationships management strategy seems to be required, especially given the actual market trends toward more product customisation. As Jahani et al (2015) stated: “unsatisfied customers, information overload and high uncertainty are the main challenges that are faced by today’s supply chains”. In this sense, relationship-based strategies can be promising. As Emmett and Crocker (2016) argue, rethinking business management according to a more relationship-based approach is likely to be transforming

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