Multicriteria Approach for Supplier Selection: Evidence from a Case Study in the Fashion Industry

Abstract

Worldwide manufactures are redesigning supply chains, often outsourcing with the aim of maintaining a competitive advantage and gaining market share. When selecting and purchasing fabrics, firms should actively cooperate with suppliers, to meet customers’ needs. In this view, the supplier selection process plays a key role in keeping a competitive edge in global markets. Therefore, this study proposes a multicriteria decision-making model (MCDM) to ease supplier evaluation and selection. Supply chain operation reference metrics (SCOR metrics) and fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS) are combined to build a model for supplier selection. The former allows us to conduct a very thorough fact-based analysis of all features in the supply chain, while the combination of fuzzy theory and SCOR model allows us to deal with uncertainty. The main novelty of this method is that it incorporates a consolidated supply chain management criteria within the framework of fuzzy set theory and multicriteria decision-making model (MCDM) facilitating their application into practice. The proposed approach is tested by considering the case of a manufacturing firm in the fashion industry willing to designate the most appropriate supplier within a set of three potential ones.