Evaluating the critical success factors of supplier development: a case study

Abstract

PurposeThe purpose of this paper is to identify and evaluate the critical success factors (CSFs) responsible for supplier development (SD) in a manufacturing supply chain environment.Design/methodology/approachIn total, 13 CSFs for SD are identified (i.e. long‐term strategic goal; top management commitment; incentives; supplier's supplier condition; proximity to manufacturing base; supplier certification; innovation capability; information sharing; environmental readiness; external environment; project completion experience; supplier status and direct involvement) through extensive literature review and discussion held with managers/engineers in different Indian manufacturing companies. A fuzzy analytic hierarchy process (FAHP) is proposed and developed to evaluate the degree of impact of each CSF on SD.FindingsThe degree of impact for each CSF on SD is established for an Indian company. The results are discussed in detail with managerial implications. The long‐term strategic goal is found to be the most significant CSF for successful SD implementation.Research limitations/implicationsThis study has not been statistically validated in a manufacturing supply chain environment for complete acceptability.Practical implicationsThe simplicity and clarity of the proposed approach enhances its acceptability for evaluating CSFs in manufacturing supply chain environment. It also provides the direction for optimally allocating the efforts and resources for successful implementation of SD in short duration.Originality/valueAlthough both CSFs and SD have been widely researched, but no study has been reported in the literature to prioritize and rank the CSFs of SD in an Indian manufacturing environment. The paper contributes to research in the supply chain management area in general and SD in particular for manufacturing environment. The proposed approach has the ability to capture the judgment of multiple experts to prioritize and rank CSFs for SD.