Different Factors and Techniques for Supplier Evaluation and Selection in Automotive Industry of Punjab

Abstract

In an automobile industry, to operate effectively the supply chain management, it is very important to perform the purchasing function effectively. It is the responsibility of the purchasing department in a company to choose the correct suppliers to purchase the required products. Thus, from purchase manager’s point of view, supplier evaluation technique is essential to choose the best supplier among the available suppliers. The literature addresses quality, delivery, technology, value and service are the five most common criteria used for supplier quality evaluation. In this article, approach of evaluation and selection of supplier has been presented as per the standards. Apart from these, the most important criteria to assess the quality of suppliers is based on a review of the literature and observation in practice. This in turn would help these organizations to review regularly and implement effective quality systems by following the set of standards. Also, nowadays most of the automobile companies have developed in-house pattern of procedures and software for the process of effective supplier selection. In the analysis, part per million equivalent technique is used to help the purchasing organization take a prompt and correct decision related to supplier selection process and evaluation in critical conditions.