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Exploring the importance of different supplier selection criteria

Author

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  • Arpan Kumar Kar
  • Ashis K. Pani

Abstract

Purpose - – Supplier selection studies have used a wide variety of supplier evaluation criteria, due to the diversity of the purchasing context. The purpose of this study is to identify the critical supplier selection criteria which are important across industries and across purchasing contexts, and subsequently estimate the importance of these criteria to the procurement practitioners. Design/methodology/approach - – First, a Delphi study has been conducted to identify the critical supplier selection criteria across manufacturing industries. Then, data were collected from 188 firms across 12 industries and analysed with fuzzy analytic hierarchy process for group decision making, to estimate the relative importance of these criteria. Findings - – Findings indicate that seven criteria are of critical importance to Indian manufacturing industries. Also evaluation criteria like product quality, delivery compliance and price have maximum criticality, while criterion like e-transaction capability is gaining in importance, with the increased adoption of e-procurement platforms. Research limitations/implications - – The study has been conducted in India, while focusing on Indian manufacturing industries. Similar study conducted in developed economies may produce different results. Practical implications - – Findings will be useful for practitioners for benchmarking supplier selection processes, not only in India, but also in similar emerging economies. Also, the outcome will provide insights for suppliers for developing systemic improvements. Originality/value - – There has been no study in recent years which has attempted to estimate the importance of supplier selection criteria, while taking a multi-industry approach. This study identifies the critical evaluation criteria and estimates their relative importance to procurement experts.

Suggested Citation

  • Arpan Kumar Kar & Ashis K. Pani, 2014. "Exploring the importance of different supplier selection criteria," Management Research Review, Emerald Group Publishing Limited, vol. 37(1), pages 89-105, January.
  • Handle: RePEc:eme:mrrpps:v:37:y:2014:i:1:p:89-105
    DOI: 10.1108/MRR-10-2012-0230
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    Citations

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    Cited by:

    1. Visani, Franco & Boccali, Filippo, 2020. "Purchasing price assessment of leverage items: A Data Envelopment Analysis approach," International Journal of Production Economics, Elsevier, vol. 223(C).
    2. Yadavalli, Venkata SS & Darbari, Jyoti Dhingra & Bhayana, Nidhi & Jha, P.C. & Agarwal, Vernika, 2019. "An integrated optimization model for selection of sustainable suppliers based on customers’ expectations," Operations Research Perspectives, Elsevier, vol. 6(C).
    3. Nikola Komatina & Danijela Tadić & Aleksandar Aleksić & Aleksandar D Jovanović, 2023. "The assessment and selection of suppliers using AHP and MABAC with type-2 fuzzy numbers in automotive industry," Journal of Risk and Reliability, , vol. 237(4), pages 836-852, August.
    4. Asadabadi, Mehdi Rajabi, 2017. "A customer based supplier selection process that combines quality function deployment, the analytic network process and a Markov chain," European Journal of Operational Research, Elsevier, vol. 263(3), pages 1049-1062.
    5. Pınar Kaya Samut, 2017. "Integrated FANP-f-MIGP model for supplier selection in the renewable energy sector," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(3), pages 427-450, May.
    6. Srđan Ljubojević & Dragan Pamučar & Dragutin Jovanović & Vujadin Vešović, 2019. "Outsourcing transport service: a fuzzy multi-criteria methodology for provider selection based on comparison of the real and ideal parameters of providers," Operational Research, Springer, vol. 19(2), pages 399-433, June.
    7. Rajiv Kumar Sharma, 2022. "Examining interaction among supplier selection strategies in an outsourcing environment using ISM and fuzzy logic approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(5), pages 2175-2194, October.

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