The impact of sustainability on supplier selection: A behavioural study

Supplier lies in first node of SC (supply chain). Rational supplier evaluation and selection are important to the whole SC's agility and competition. Based on analysis of supplier management, supplier evaluation guide line is discussed in paper. Then neural network-based supplier evaluation model is established. BP dynamic neural network is applied in constructing model and the amelioration weight reset arithmetic is imported in supplier evaluation and selection model. Finally, service-oriented software development method is used to develop neural network-based supplier selection expert system. Supplierpsilas product, quality guarantee, product providing history, after service, qualification certificate and enterprise development potential are provided with Web service. Each supplier used this system to fill in its supply information in Internet. The information is transmitted to supplier evaluation and selection center through XML information. According to supplier selection and evaluation arithmetic, supplier evaluation and selection center computes supplier selection and evaluation result. Enterprise can select classic supplier based on supplier selection and evaluation result.

Supplier lies in first node of SC (supply chain???. Rational supplier evaluation and selection are important to the whole SC’s agility and competition. Based on analysis of supplier management, Supplier evaluation guide line is discussed in paper. Then neural network-based supplier evaluation model is established. BP dynamic neural network is applied in constructing model and the amelioration weight reset arithmetic is imported in supplier evaluation and selection model. Finally, the steps of supplier selection and evaluation are described. According to supplier selection and evaluation arithmetic, supplier evaluation and selection center computes supplier selection and evaluation result. Enterprise can select classic supplier based on supplier selection and evaluation result.

Supplier evaluation and selection are key components in the supply chain because supplier performance directly affects the supply chain's efficiency. Therefore, companies should think strategically when they need to select their suppliers. Thus, selecting and evaluating new suppliers is essential in shaping the supply chain's smoothness and efficiency. Selecting suppliers is a complex issue as it involves many factors and decisions to be considered and needs to be assessed with an auditing process. However, a supplier audit is an expensive way to evaluate supplier capability. This research aims to propose a supplier selection model for a corrugated carton manufacturing company. The SOCCER model, developed by Steve Rogers, was used as the supplier selection criteria. Analytical Hierarchy Process (AHP) was used in the supplier selection. A face-to-face interview method was used in collecting data. The results show that the cost structure is the ultimate concern on supplier selection which bears 44.2% of the SOCCER model, followed by operational capability (23%), customer approach (13.5%), economic performance (8.3%), strategic direction (6.9%), and lastly research and development (4.1%). The percentages inform the company how much attention they need to pay when evaluating and selecting a new supplier. ABSTRAK: Penilaian dan pemilihan pembekal adalah kunci utama dalam rantaian bekalan kerana prestasi pembekal secara langsung melibatkan kecekapan rantaian bekalan. Oleh itu, syarikat perlu memikirkan secara strategik apabila ingin memilih pembekal. Dengan demikian, pemilihan dan penilaian pembekal baru adalah penting dalam pembentukan kelancaran rantaian bekalan dan kecekapan. Pemilihan pembekal adalah isu kompleks kerana ianya melibatkan banyak faktor dan keputusan perlu difikirkan dan perlu dinilai bersama proses audit. Namun, audit pembekal adalah mahal bagi menilai kemampuan pembekal. Kajian ini mencadangkan model pemilihan pembekal bagi syarikat pembekal kotak karton. Model SOCCER dicipta oleh Steve Rogers, telah digunakan sebagai kritia pemilihan pembekal. Proses Hirarki Analitikal (AHP) digunakan dalam pemilihan pembekal. Kaedah temuduga bersemuka digunakan dalam pengumpulan data. Dapatan kajian menunjukkan struktur harga adalah kehendak utama dalam pemilihan pembekal iaitu 44.2% daripada model SOCCER, diikuti kemampuan operasi (23%), pendekatan pelanggan (13.5%), prestasi ekonomi (8.3%), misi strategik (6.9 %), dan akhirnya penyelidikan dan pembangunan (4.1%). Peratusan ini berguna untuk syarikat dalam memberi keutamaan dalam penilaian dan pemilihan pembekal baru. ABSTRAK: Supplier evaluation and selection are key components in the supply chain because supplier performance directly affects the supply chain's efficiency. Therefore, companies should think strategically when they need to select their suppliers. Thus, selecting and evaluating new suppliers is essential in shaping the supply chain's smoothness and efficiency. Selecting suppliers is a complex issue as it involves many factors and decisions to be considered and needs to be assessed with an auditing process. However, a supplier audit is an expensive way to evaluate supplier capability. This research aims to propose a supplier selection model for a corrugated carton manufacturing company. The SOCCER model, developed by Steve Rogers, was used as the supplier selection criteria. Analytical Hierarchy Process (AHP) was used in the supplier selection. A face-to-face interview method was used in collecting data. The results show that the cost structure is the ultimate concern on supplier selection which bears 44.2% of the SOCCER model, followed by operational capability (23%), customer approach (13.5%), economic performance (8.3%), strategic direction (6.9 %), and finally research and development (4.1%). The percentages inform the company how much attention they need to pay when evaluating and selecting a new supplier.

In today's global competitive environment, supplier evaluation and selection strategies are not only important for buyer performance and competitiveness, but also for supplier performance and capabilities. This study from the suppliers’ perception examines (i) the structure of supply relationships between Turkish automotive parts and components manufacturers and their global buyers, (ii) global buyers’ supplier evaluation and selection strategies, and (iii) the impact of global buyers’ supplier evaluation and selection strategies on the supplier performance in the long-term. Data from automotive parts and components suppliers in Turkey were used to test the hypotheses through multiple regression analysis. The findings of this study reveal that automotive parts and components suppliers can be either in tier-type relationhips with their global buyers or they can be out of the tier hieararchy. In a tier-type relationhip, supplier can be either first-tier supplier for some products/relationships or/and they can be second-tier supplier for other products/relationships. To establish long-term supply relationships on a global base supplier evaluation and selection strategy is based on many decision criteria and impacts on the supplier's operational, technical and financial performance in the long-term. Therefore, there is a positive association between supplier evaluation and selection strategy and supplier performance, which guides and motivates supplier firms to improve their performance and capabilities. From the supplier's perception, quality, delivery, and price along with commitment and trust are the most important dimensions in global supplier selection and establishing long-term supply relationships. Additionally, while in previous studies buyers perceive cost to be an important supplier selection criterion, in this study suppliers perceive price as more important in supplier selection. As a result, this study, revealing the perception of the suppliers, fulfils a gap and suggests several implications.

PurposeThe purpose of this study is to address supplier evaluation and selection in a constrained environment of advance purchasing. The study presents the potential solutions to supplier evaluation and selection issues in the Indian automobile sector where advance purchases are carried out to fulfill the supply chain demand.Design/methodology/approachBased on the literature review and expert elicitation, nine major factors which are responsible for the successful implementation of supplier selection in a constrained environment of advance purchasing are identified. This paper explores supplier selection in constrained environment issues based on an integrated method based on Shannon entropy, analytic hierarchy process (AHP) techniques and failure mode effects analysis (FMEA).FindingsAnalysis of the results of the study suggests that traditional suppliers are not suitable in advance purchasing scenarios; hence, criteria developed in this paper to accommodate the requirement of advance purchasing with possible risk considerations are of high importance. This research paper is an original attempt to develop supplier selection criteria for advance purchasing with special identification of deliverability, flexibility, innovation and productivity factors through a case demonstration.Research limitations/implicationsThis study uses data from secondary sources, literature reviews and expert opinions. It formalizes the important factors of successful supplier selection in the constrained environment of advance purchasing in the automotive industry context.Practical implicationsThe paper shows how the engagement of suppliers through advance purchasing helps automotive companies in developing a competitive advantage. The integrated approach of Shannon entropy, AHP techniques and FMEA is an effective and useful method that can be applied to the supplier selection process.Originality/valueThe proposed FMEA-AHP method integrated with Shannon entropy used for evaluation represents a useful tool to embrace the suitable functioning tactics for efficient supplier selection. The study is unique as supplier evaluation and selection in a constrained environment of advance purchasing is not investigated much and has good industry applicability.

Supplier selection and evaluation is an important part of supplier management. Identifying important authors, institutions and their cooperative network relationships, and revealing the theme evolution and research hotspots in this field can provide reference for relevant research in the future. This study based on the CNKI database, 662 relevant documents were obtained using the keywords of “supplier evaluation” and “supplier selection”. Integrating CiteSpace and other software, a bibliometric review of supplier evaluation and selection was conducted with the help of descriptive statistics, cooperative network analysis, and timeline view. The results show that the research on supplier selection evaluation has attracted extensive attention of many scholars, with a wide variety of decision-making methods and diversified application fields. “Cold Chain Logistics”, “Prefabricated Components” and “Sustainable” are the hot spots in recent years. It is worthy of paying more attentions to constructing new models for Supplier selection and evaluation, and some artificial intelligence technologies, such as neural network and machine learning are popular methods to advance the development of this filed.

As global supply chains become more developed and complicated, supplier quality has become increasingly influential on the competitiveness of businesses during the Covid-19 pandemic. Consequently, supplier selection is an increasingly important process for any business around the globe. Choosing a supplier is a complex decision that can result in lower procurement costs and increased profits without increasing the cost or lowering the quality of the product. However, these decision-making problems can be complicated in cases with multiple potential suppliers. Vietnam's textile and garment industry, for example, has made rapid progress in recent years but is still facing great difficulties as the supply of raw materials and machinery depends heavily on foreign countries. Therefore, it is extremely important for textile and garment manufacturing companies in Vietnam to implement an effective supplier evaluation and selection process. While multicriteria decision-making models are frequently employed to assist with supplier evaluation and selection problems, few of these models consider the problem under the condition of a fuzzy decision-making environment. The aim of this paper is to create a hybrid MCDM model using the Fuzzy Analytical Hierarchy Process (FAHP) model and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) to assist the supplier selection process in the garment industry in a fuzzy decision-making environment. In this study, the FAHP method is used to evaluate the performance and the weight of each criterion. TOPSIS is then used to rank all potential suppliers. The proposed model is then applied to a real-world case study to demonstrate both the process of calculation as well as its real-world applicability. The results from the case study provide empirical evidence that the model is feasible. The proposed approach can also be used in combination with other MCDM models to better support decision makers and can be modified to be applied in similar supplier selection processes for different industries.

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.

This research paper deals with the development of supplier selection methodology for an organization. In today's dynamic environment supplier selection decision presents organizations with a complex scenario and the age old tradition of selecting suppliers based on solitary criteria, mainly price and the practice of engaging in adversarial relation with suppliers is only history. Supplier evaluation and selection is recognized as a multi-criteria decision problem and the use of analytical and mathematical models is highly emphasized by professionals and researchers alike. However, in these parts of the world the application of tools and models for supplier selection problem is yet to surface and the banking and finance industry here in Ethiopia is no exception. Thus, the purpose of this research was to address supplier selection problem through modeling and application of analytical hierarchy process (AHP). As the result a model was developed via AHP and run using a historical data from AIB's (Awash International Bank S.C.) generator purchase and the result indicated that quality/technical has higher rank (46%), price/cost (25%), and followed by after sale service (11%). Furthermore, delivery, financial position and reputation have all equal importance and attribute 6% each. The use of such technique will reduce the level of subjectivity in supplier evaluation and selection, and allows one to reach an optimal selection decision.

The Fuzzy ART algorithm: A categorization method for supplier evaluation and selection

Supplier selection is considered to be one of the most critical activities of purchasing management in a supply chain. Selecting the right suppliers significantly reduces the purchasing cost and improves corporate competitiveness. Diverse methods have been developed to date, which address the needs of the supplier selection process. This article presents a review of non-deterministic analytical methods reported in the literature for supporting the supplier selection decision. The review is based on an extensive search in the academic literature from 2001 to 2013. A taxonomy of the supplier selection methods is presented by classifying the published supplier selection studies into two major categories as stochastic methods and fuzzy methods. These methods are further divided into individual approaches and integrated approaches. The objective of this research is threefold. First, it classifies the existing supplier selection literature according to the methods employed and determines the most prevalently used approaches, and also highlights main advantages and shortcomings of these approaches. Second, recent trends in supplier evaluation and selection methodologies are examined. Finally, this study identifies the most widely used decision criteria for supplier selection.

Supplier evaluation and selection is an important issue in the supply chain management. Many different factors would have effect on the performance of suppliers, therefore supplier evaluation and selection is a typical multi-criteria decision making problem. Data Envelopment Analysis (DEA) is an effective methodology of evaluating the relative efficiency of Decision Making Units (DMUs) with multiple inputs and outputs. DEA has been widely used in the supplier evaluation and selection problem. However, traditional literatures mostly concentrated on the supplier evaluation and selection without consideration of the decision maker's preference. In this paper, we propose a weight restricted DEA model for the supplier evaluation and selection problem in which two kinds of decision maker's preferences can be reflected by introducing different kinds of weight restrictions. Numerical example is provided to examine the validity and effectiveness of our proposed model. KEYWORD: data envelopment analysis; supplier evaluation; supplier selection; weight restriction

The fundamental objective of supply chain management (SCM) is to integrate various suppliers to satisfy market demand. Supplier evaluation and selection is very important for establishing an effective supply chain. As a matter of fact, supplier selection consists of both qualitative and quantitative criteria, so it is considered as a multi criteria decision making (MCDM) problem. Under incomplete or uncertain information, the fuzzy set theory allows us make decisions with approximate reasoning. In order to overcome the uncertainty which is constituted by vague situations in supplier selection, we utilize the “extension of the PROMETHEE method in a fuzzy environment” (F-PROMETHEE). In this chapter, multi criteria supplier selection based on a fuzzy PROMETHEE method with an application to supplier selection decision problem is conducted. The main advantages of the methodology are the user friendliness coming from the linguistic evaluations, and the consideration of the vagueness or fuzziness inherent to the decision making environment. Hence, the method can be an efficient and effective methodology to be used by decision makers on supply chains. The proposed methodology can also be applied to any other selection problem.

PurposeThe oil and gas industry is a crucial economic sector for both developed and developing economies. Delays in extraction and refining of these resources would adversely affect industrial players, including that of the host countries. Supplier selection is one of the most important decisions taken by managers of this industry that affect their supply chain operations. However, determining suitable suppliers to work with has become a phenomenon faced by these managers and their organizations. Furthermore, identifying relevant, critical and important criteria needed to guide these managers and their organizations for supplier selection decisions has become even more complicated due to various criteria that need to be taken into consideration. With limited works in the current literature of supplier selection in the oil and gas industry having major methodological drawbacks, the purpose of this paper is to develop an integrated approach for supplier selection in the oil and gas industry.Design/methodology/approachTo address this problem, this paper proposes a new uncertain decision framework. A grey-Delphi approach is first applied to aid in the evaluation and refinement of these various available criteria to obtain the most important and relevant criteria for the oil and gas industry. The grey systems theoretic concept is adopted to address the subjectivity and uncertainty in human judgments. The grey-Shannon entropy approach is used to determine the criteria weights, and finally, the grey-EDAS (evaluation based on distance from average solution) method is utilized for determining the ranking of the suppliers.FindingsTo exemplify the applicability and robustness of the proposed approach, this study uses the oil and gas industry of Iran as a case in point. From the literature review, 21 criteria were established and using the grey-Delphi approach, 16 were finally considered. The four top-ranked criteria, using grey-Shannon entropy, include warranty level and experience time, relationship closeness, supplier’s technical level and risks which are considered as the most critical and influential criteria for supplier evaluation in the Iranian oil and gas industry. The ranking of the suppliers is obtained, and the best and worst suppliers are also identified. Sensitivity analysis indicates that the results using the proposed methodology are robust.Research limitations/implicationsThe proposed approach would assist supply chain practicing managers, including purchasing managers, procurement managers and supply chain managers in the oil and gas and other industries, to effectively select suitable suppliers for cooperation. It can also be used for other multi-criteria decision-making (MCDM) applications. Future works on applying other MCDM methods and comparing them with the results of this study can be addressed. Finally, broader and more empirical works are required in the oil and gas industry.Originality/valueThis study is among the first few studies of supplier selection in the oil and gas industry from an emerging economy perspective and sets the stage for future research. The proposed integrated grey-based MCDM approach provides robust results in supplier evaluation and can be used for future domain applications.

One of the most notable paradigms increases the productivity of the firms is managing the supply chains and supply chain management (SCM) has come to play a critical role as a key to optimize the business activities under recent agile improvement of network technology and economic globalization. One of the crucial challenges for purchasing department in SCM is supplier evaluation and selection. On the other hand, sustainable development has become a buzzword that received a lot of attentions by policy makers, the popular press, and journals in different scientific fields as an interdisciplinary issue. During the last two decades, sustainability issue has acquired a dominant place in SCM and now is being discussed seriously. Thereby, sustainable purchasing and sustainable supplier selection will be fertile areas for research. Since the Electrical & Electronic industry (E&E) is an important contributor to the economy of worldwide business, the supplier selection issue in E&E industry is considered in this work. First, among the extensive range of supplier selection literature in different industries, supplier selection papers in E&E industry is derived. Then, reviewing and going through these papers, a comprehensive framework for supplier selection criteria considering sustainability in E&E industry is proposed. Finally, the real case study from E&E industry of Malaysia is applied and the proposed framework is utilized to select the best suppliers in the mentioned company. It is worthy to note that, Data Envelopment Analysis (DEA) approach is applied in this case to rank the suppliers.