Supplier assessment process for manufacturing companies with existing suppliers

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 a large number of suppliers, it is necessary to divide suppliers based on their track-record for supplier development program and new product development. The performance of any organization to a large extent depends on their suppliers' performance. Hence, well evaluated selection criteria and, decision-making models which lead to improved supplier assessment and development are 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. A case study of manufacturing firm with five suppliers has been used to demonstrate the result of hybrid model.