Supplier Selection Decisions In Systems/Software Purchases

Abstract

Changing business conditions are likely to influence the supplier evaluation process and, thus, the relevance of selection criteria should be periodically reconsidered. In order to explore this issue, an empirical study of logistics executives' perceptions of the relative importance of specific criteria (used in the selection of systems/software vendors) was conducted. The respondents identified vendor attributes (i.e., support, reliability) and product/service attributes (i.e., flexibility, ease of use) to be of the greatest importance and economic attributes (i.e., cost) to be significantly less important when selecting a vendor for systems/software.

Supply source selection criteria: The impact of supplier performance on distributor performance

“…'Lower prices' is the most frequently cited reason for pursuing a purchasing strategy, and price has been an important determinant of the purchasing decision process (Gustin et al, 1997). Consistent with the earlier work of Lehmann and O'Shaughnessy (1974), Evans (1994) described price as a top priority and the most important attribute during the implementation of a purchasing strategic plan concerning purchases of routine products.…”

“…Modern purchasing processes include auditing the potential suppliers' strategic capabilities, such as their ability to contribute to future product development (Monczka, Callahan & Nichols, 1995). Recently, Gustin et al (1997) stress the importance of supplier efficiency as one of the most highly rated purchasing criteria. Buyers are aware of the need for a long-term interactive relationship with a vendor, and the possession of such capabilities by the supplier is essential for the buyer's attempt to gain competitive advantage.…”

“…In recent years, the purchasing function has been seen by many managers as a key strategic tool in the firm's attempt to achieve positional competitive advantage (Gustin, Daugherty & Ellinger, 1997). Modern business organizations pay particular attention to the identification and selection among alternative supply sources (Raydel & Lee, 1994;Shipley, Egan & Edgett, 1991).…”

The relative importance of tender evaluation and contractor selection criteria

“…In the study by Gustin et al [8], flexibility and ease of use were identified as the most important criteria used in the selection of contractors to supply an Integrated Logistics Information system. Whilst cost was considered moderately important, it appeared that operability and adaptability were of primary importance under this scenario.…”

Evaluating and selecting e-commerce software and communication systems for a supply chain

“…They will each have to be managed, maintained and operated internally. A summary of these factors based on the literature (Gustin et al, 1997;Sarkis and Sundarraj, 2000) include:…”