Supplier assessment process for a manufacturing firm

Abstract

In the global supply chain, appropriate and sustainable suppliers play a vital role in supply chain development and feasibility. In any big organization with many suppliers, it is necessary to divide suppliers based on their track-record for supplier development program and new product development. Since the performance of any organization to a large extent depends on their suppliers' performance, well evaluated selection criteria and, decision-making models which lead to improved supplier assessment and development is necessary. In this paper, SCOR® performance evaluation approach and ISO standards are used to determine selection criteria for better utilization of supplier assessment by using a hybrid model of Analytic Hierarchy Problem (AHP) and Techniques for Order Preference by Similarity to Ideal Solution (TOPSIS). AHP has been used to determine the global weightage of criteria that helps TOPSIS to get the suppliers' performance score. The qualitative criteria are taken into consideration for supplier assessment process. The hybrid model and solution approach are tested with the case study of five suppliers for a manufacturing firm. The detailed analysis shows the superiority of proposed model over other solutions which considered individual decision-making models.