An analysis of Supplier Selection in Manufacturing Supply Chain Management

Abstract

An ever-increasing trend in today's industrial firms is to exploit outsourcing for those products and activities deemed to be outside the company's core business (Riccardo Dulmin, Valeria Mininno,2003). Vendor selection and evaluation is becoming one of the most critical activities of firm. This paper first overviews the main research of supplier selection and divides evaluation methods into 3 categories: conceptual approaches, empirical research and analytical models for vendor selection. Next, the framework for supplier selection process in supply chain management is proposed and an evaluation model of supplier selection is set up in terms of cost (price, price feasible responsibility), quality (delivery on time, defective ratio, product reliability), service (after-sales service, response to customer, training and teaching), manufacture and technological capability (manufacture capability, financial status, technological support, geographical location), reputation (history record, status in the same area, long-term relationship) and information system. Finally, this model application is demonstrated through the evaluation system from Haier company and draw general conclusions for further research