Abstract
Choosing the right supplier is vital as it helps to achieve high-quality products at relatively lower costs on the one hand and increases profitability by increasing customer satisfaction on the other. Cost alone is not enough in the supplier selection process. Managers should also consider other criteria such as quality, reliability, crisis management, green product simultaneously. Supplier selection is a multi-criteria decision-making (MCDM) problem involving both qualitative and quantitative criteria. This study uses the Analytic Hierarchy Process (AHP), which is one of the MCDM methods. The aims of this study are to determine the most essential supplier selection criteria in the catering industry and to choose the most suitable supplier. A semi-structured questionnaire was used to identify the supplier selection criteria and conducted with 30 experts. Based on the identified criteria by the experts, six experienced supply chain managers from six different catering firms were invited to complete the pair-wise comparison survey. Finally, the supplier with the highest overall score, using the seven highest-ranked criteria, have been selected from the three alternatives. This study concludes that the most critical criterion is crisis management. Cost is relatively less critical criterion in the catering industry.
Highlights
Today’s increasing competition conditions, advancement in technology, and increasing customer expectations have required businesses to manage their supply chains to effectively respond to competition, maintain and increase their market shares, and reach profit and customer satisfaction goals
Practical Application: This study provides an analytical tool to determine the criteria and to formulate supplier selection in catering industry using the Analytic Hierarchy Process (AHP)
Chain management will fail if the cheapest supplier is selected without considering additional costs such as the costs related to unreliable delivery, limited quality of goods supplied, and poor communication
Summary
Today’s increasing competition conditions, advancement in technology, and increasing customer expectations have required businesses to manage their supply chains to effectively respond to competition, maintain and increase their market shares, and reach profit and customer satisfaction goals. Supplier selection decisions play a key role in reducing overall purchasing costs, maintaining quality standards and improving performance. Firms must choose their suppliers correctly and establish long-term strategic partnerships with their suppliers to gain a long-term competitive advantage and improve their performance (Ulutaş, 2015). A strategic partnership between suppliers and service providers can achieve competitive advantages related to supply chain management. The success of a supply chain is directly associated with the selection of the most appropriate suppliers. The evaluation process primarily involves assessing several complex factors for selecting a supplier that will best meet the catering firm’s requirements
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