Supplier Selection Strategy of a Business Organization

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DOI: 10.21522/TIJMG.2015.SE.19.02.Art027

Authors : Dimas-Skari Abigail


In the present global, highly competitive, dynamic and ever-growing market environment, Consumers have increasingly showed preference to fast service delivery of excellent and high quality yet economical products. This has led management of supply chain in Organizations to consider and adopt beneficial supplier selection strategies as important to the success of an efficient Supply Chain Management in Business Organizations. The supplier selection decision making process involves multiple criteria problem which includes both qualitative and quantitative factors. Sometimes a balance between the tangible and intangible factors is essential in selecting the best supplier. This paper provides a picture of a number of Models such as buying center model of Kotler and Armstrong, buy Grid of Patrick, Robinson, Fari and wind framework, Webster and wind, provide some techniques developed to deal with selecting and evaluating of Suppliers, different selection methods concerning supplier selection are discussed, and the advantages and disadvantages of selection methods with emphasis on the Analytic Hierarchy Process (AHP) and Supplier selection, qualitative and quantitative criteria, emerging issues of supplier selection and the solutions for these problems are summarized, maximize supply security, make profit and reduce costs. It also recommended that all business firms should constitute the buying center known as Decision Making Unit (DMU) of the purchasing decision.

Keywords: Supplier selection, Analytic Hierarchy Process (AHP), qualitative and quantitative criteria, Decision Making Unit (DMU).


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