Supplier selection: a proposed framework for decision making

Abstract

This article presents and performs a preliminary validation of a framework for supplier selection. It makes use of, in sequence, Kraljic's supplier relationship portfolio and the multi-criteria decision tool named the analytic hierarchy process (AHP). The proposal's main objective is to provide companies with a practical and easy-to-use tool for classifying the importance and criticality of raw materials and for selecting suppliers based on a hierarchy. One result of this action-based study is the preliminary validation of the proposed model through its application in an electronics company. The application of the method suggests an improvement in the company's supplier selection practices related to one key item of one of its products.