Supplier evaluation & selection attributes in discrete manufacturing industry – empirical study on Indian manufacturing industry

Abstract

To be able to produce low cost, high quality products within an assigned time frame needs a group of competent and loyal suppliers. Effective and competitive business can only be achieved by choosing the correct supply bases. Thus, supplier selection is a key issue for supply chain management or supply relationship management. The supplier selection process is complicated by the multi-objective nature of the decision making including the differing needs and priorities of different categories of materials and equipment, the different selection criteria in different segments of the industry and the perception and experience of the supply chain policy makers in each specific industry as well as the front line buyers. Feedback from cross functional team members in specific purchasing environments also impacts the supplier selection process or criteria. This research paper firstly explores in depth the previous work carried out on supplier selection and evaluation. Secondly the views of supply chain policy makers, buyers and cross functional team members from discrete manufacturing industries are considered through a primary survey. Finally the factors responsible for supplier selection and evaluation in the discrete manufacturing industries and their inter-relationships are established.