The Impact of Supplier Selection Criteria and Supplier Involvement Towards Supplier Performance at CV Teguh Jaya

Abstract

The aim of this study is to determine the impact of supplier selection criteria and supplier involvement on supplier performance in CV Teguh Jaya. The variables studied were supplier selection criteria (X1) and supplier involvement (X2). There are five indicators in supplier selection criteria, namely cost, quality, delivery, flexibility, and reliability. Whereas Supplier Involvement can be inferred from indicators such as how active the supplier is in updating goods and data, providing responses to customers, and minimizing problems in business processes. The analytical tool used in this study was multiple linear regression analysis. The population in this study was resellers who have become regular customers in CV Teguh Jaya with a sample size of 98 respondents, determined through purposive sampling technique with the criterion of being a fixed customer for at least 2 years. From the data analysis results we can infer that both supplier selection criteria and supplier involvement have impact on supplier performance. Based on the analysis results, CV Teguh Jaya needs to maintain the elements that were deemed satisfactory by the customers and need to improve on elements deemed lacking. Future research can consider adding other variables used in the previous studies.
 Keywords: Supplier selection criteria; Supplier involvement; and Supplier performance