Study on Supplier Product Core Competencies based on Customers�� Needs: an Application of GRA and QFD Methods

Abstract

During the market development or product innovation process, many centrifugal pump products suppliers use their experiences to judge which results in a lack of objectivity and a waste of resources. In order to solve the above drawbacks, the paper focuses on specific market to make suppliers’ assessment factors as the identification of customer’s needs. We propose to use the grey relational analysis method instead of using past experiences. By using purposive sampling, the samples are listed companies producing hot-rolled, cold-rolled, galvanized steel, steel pipe, H beam, etc. There were 42 questionnaires distributed, and 33 of them were returned with the achievement rate of 79%. The results of centrifugal pump supplier assessment factors were analyzed. Then the core competencies of suppliers were analyzed through quality function deployment (QFD) decision analysis and grey relational analysis methods(GRA). The research is based on purposive sampling, and uses 33 listed companies which produce steel as research samples to understand supplier’s main decisionmaking ability. The results show that through grey relational analysis, the order of supplier’s assessment factors are: 1. delivery time; 2. after-sales service; 3. suppliers are willing to solve product defects problem immediately. These are the most important three items among the buyers. Among them, the GRA value of switching cost is 0 which presents its potential message is correspond to practical issue. As for the analysis of suppliers, “the organization and coordination skills” is the first priority in QFD and GRA analysis methods, and this can be the reference for company management.