Risk Assessment in Supplier Selection for Intelligent Manufacturing Systems Based on PLS-SEM

Abstract

With the in-depth reform of intelligent manufacturing, selecting high-quality intelligent manufacturing system solution suppliers has become a key force to promote the intelligent transformation of manufacturing enterprises. However, manufacturing enterprises have hidden risks in the selection process of many intelligent manufacturing system solution suppliers, so it is urgent to carry out the research on the risk evaluation of intelligent manufacturing system solution suppliers. Based on the current situation in China’s intelligent manufacturing industry, this paper constructs the evaluation index system of intelligent manufacturing system solution suppliers, uses the PLS-SEM method to establish the risk evaluation model of intelligent manufacturing system solution suppliers, collects data through a questionnaire survey, uses a PLS algorithm to fit the index and test the model, and uses power BI software to visualize the risky impact. The conclusions are as follows: (1) The primary indicators have hidden risks for the system solution suppliers. (2) The higher the achievement of secondary indicators, the lower the implied risk, and the more conducive to the intelligent upgrading of manufacturing enterprises. According to the visualization results, management suggestions are given to provide useful reference for manufacturing enterprises to select high-quality intelligent manufacturing system solution suppliers and promote the transformation and upgrading of manufacturing enterprises, from digitization and networking to intelligent stage.