Abstract

In an increasingly competitive industrial environment, every company strives to increase the quality and efficiency of its product development process. PT. Udaka Indonesia, a clothing manufacturer, is experiencing raw material shortages that disrupt the company's production process. The goal of this research is to assess and segment the company's suppliers. The Best Worst Method (BWM) is employed for weighting criteria, and Fuzzy TOPSIS is used to rank alternative providers and subsequently segment them. The dimensions of capabilities (8 criteria with 26 sub-criteria) and willingness (4 criteria with 15 sub-criteria) make up the company's supplier evaluation criteria. The evaluation results suggest that suppliers A2, B2, C2, and D2 are the best in terms of capabilities for label accessories, stickers, paper tags, and polybags, respectively, while A1, B2, C2, and D2 are the best in terms of willingness. Supplier segmentation results show that segmentation 1 includes suppliers C1, B1, B3, and D1, segmentation 2 includes supplier A3, and segmentation 4 includes suppliers A1, A2, B2, B4, C2, and D2.

Highlights

  • In an increasingly competitive industrial environment, every company strives to increase the quality and efficiency of its product development process

  • This study aims to determine the best supplier and the actions that need to be taken against each supplier through supplier evaluation and segmentation

  • The difference between this study and previous studies is that the Best Worst Method (BWM) is integrated with the Fuzzy TOPSIS method to produce supplier evaluation and segmentation

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Summary

Introduction

In an increasingly competitive industrial environment, every company strives to increase the quality and efficiency of its product development process. The company does this to remain competitive with its rivals. According to Hendratmiko (2010), raw materials are the company's most crucial aspect in ensuring a smooth production process. The supplier is one factor that has a significant impact on the company's raw material availability. In the last four months, 31.9% of arrivals experienced rejection due to raw materials coming from suppliers that were defective or not in accordance with company standards. The company's issues are tied to delivering raw materials from suppliers who frequently have mistaken quality and quantity and late deliveries, resulting in losses

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