The Ideal Criteria of Supplier Selection for SMEs Food Processing Industry

Ramlan, Rohaizan; Bakar, Engku Muhammad Nazri Engku Abu; Mahmud, Fatimah; Ng, Hooi Keng

doi:10.1051/matecconf/20167005006

Cited by 9 publications

(10 citation statements)

References 18 publications

(19 reference statements)

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“…Cost A Price of good (A1) [28], [29], [30], [31] Discount (A2) [29], [30], [31] Shipping cost (A3) [30], [31], [7], [32] Payment method (A4) [30], [31] Payment deadline (A5) After-sales service cost (A6) [32] Quality B…”

Section: Sub Criteria Sourcementioning

confidence: 99%

“…Rejection rate of the product (B1) [30], [32], [33], [34], [35] Processes for internal audit quality (B2) [30], [7], [32], [36] Quality of product (B3) [5], [29], [37] The capability of handling abnormal quality (B4) [25], [32] Remedy for quality problems (B5) [25], [38], [39] Delivery C…”

Section: Sub Criteria Sourcementioning

confidence: 99%

“…On-time delivery (C1) [29], [32] Compliance with quantity (C2) [25], [31] Geographical Location (C3) [29], [40] Lead time flexibility (C4) [7], [32], [41] Flexibility D Flexibility of delivery time (D1) [30], [32], [39] Flexibility in ordering (D2) Product Development (D3) [29], [39] Service E After-sales service (E1) [32] ICETIA 2023…”

Section: Sub Criteria Sourcementioning

confidence: 99%

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Integration of the AHP-TOPSIS Approach in Material Supplier Selection

Puspitasari,

Febriani

2024

E3S Web of Conf.

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A medium-scale manufacturing company that produces various kinds of stainless furniture products does not have clear criteria for supplier selection. Additionally, there is no long-term relationship and the purchasing method involves selecting the supplier with the best offer (spot purchase). Materials have been delayed several times, resulting in cost overruns that impact both additional time and production. The delay is caused by the unavailability of the ordered raw materials from the supplier, leading to production delays and posing a risk of customer order fulfilment delays. Therefore, there is a need to identify the best supplier capable of meeting the company’s requirements. The purpose of this research is to determine the optimal supplier for critical materials using the AHP-TOPSIS method. The supply positioning model is employed to categorize materials and formulate procurement recommendations by considering two dimensions, there are supply risk, and expenditure. The TOPSIS method is used to identify the best alternative supplier, leading to supplier A being ranked with the highest level of preference, followed by suppliers B and C. Alternative strategies for procuring critical materials can include reducing supply risks, establishing long-term partnerships, and implementing partnership contracts.

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Section: Sub Criteria Sourcementioning

confidence: 99%

Section: Sub Criteria Sourcementioning

confidence: 99%

Section: Sub Criteria Sourcementioning

confidence: 99%

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Integration of the AHP-TOPSIS Approach in Material Supplier Selection

Puspitasari,

Febriani

2024

E3S Web of Conf.

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“…While the capacity of the aforementioned 6 different catering firms varies between 14000 and 130000, the average capacity has been determined as 52500 person/day. The hierarchical structure of the decision model shows that 8 pair-wise comparison matrices must be developed, which are pair-wise comparison for the criteria, and pair-wise comparison for alternatives based on crisis management, quality, payment Dickson (1966), Alehashem et al (2013), Li et al (1997), Yahya & Kingsman (1999), Tam &Tummala (2001), Yu & Jing (2004), Liu & Hai (2005), Weber et al (1991), Zhang et al (2003), Zhang (2018), Ghodsypour & O'Brien (1998), Ng (2008), Ha & Krishnan (2008), Chan & Kumar (2007), Verma & Pullman (1998) Payment term 3.43 Haq & Kanan (2006) Reliability 3.36 Yu & Jing (2004), Ramlan et al (2016) Cost 3.26 Alehashem et al (2013), Tam & Tummala (2001), Yu & Jing (2004), Weber et al (1991), Zhang et al (2003), Zhang (2018), Ghodsypour & O'Brien (1998), Dickson (1966), Ramlan et al (2016), Verma & Pullman (1998), Amid et al (2006) Experience 3.16 Dickson (1966), Lehmann & O'Shaughnessy (1974), Haq & Kanan (2006) Green production 3.13 Min & Galle (1999) Perreault & Russ (1976) Production facilities and capacity 1.70…”

Section: Pair-wise Comparison Of Criteria and Alternativesmentioning

confidence: 99%

Food supplier selection in the catering industry using the analytic hierarchy process

Ikinci

Tipi

2022

Food Sci. Technol

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Choosing the right supplier is vital as it helps to achieve high-quality products at relatively lower costs on the one hand and increases profitability by increasing customer satisfaction on the other. Cost alone is not enough in the supplier selection process. Managers should also consider other criteria such as quality, reliability, crisis management, green product simultaneously. Supplier selection is a multi-criteria decision-making (MCDM) problem involving both qualitative and quantitative criteria. This study uses the Analytic Hierarchy Process (AHP), which is one of the MCDM methods. The aims of this study are to determine the most essential supplier selection criteria in the catering industry and to choose the most suitable supplier. A semi-structured questionnaire was used to identify the supplier selection criteria and conducted with 30 experts. Based on the identified criteria by the experts, six experienced supply chain managers from six different catering firms were invited to complete the pair-wise comparison survey. Finally, the supplier with the highest overall score, using the seven highest-ranked criteria, have been selected from the three alternatives. This study concludes that the most critical criterion is crisis management. Cost is relatively less critical criterion in the catering industry.

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“…The enterprises perceive the importance of prices differently, especially in agriculture. The ideal criteria of supplier selection in food processing industry are defined by Ramlan et al (2016). They investigated that cost, quality, service and delivery are the most important criteria.…”

Section: Sector Industrymentioning

confidence: 99%

Supplier Performance Management in Context of Size and Sector Characteristics of Enterprises

Pech¹,

Vaněček²

2020

QIP Journal

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Purpose: The paper deals with the differences of supplier performance management characteristics by different size of the enterprises and sectors of industry.Methodology/Approach: The research is based on a questionnaire survey carried out in 2016-2019 in 366 enterprises. Four hypotheses were formulated, focused on supplier selection preferences, frequency of supply evaluation, providing feedback to the suppliers about their performance and quality control. The results are analyzed by the tests of Chi-square statistics.Findings: The results show that the enterprises differ in the criteria of the selection of the supplier, frequency of supply evaluation and providing feedback to the suppliers about their performance according to their sector industry. In terms of the size of the enterprises, differences were found only in the evaluation of suppliers and evaluation feedback. Enterprises did not differ in quality control of the deliveries.Research Limitation/implication: The results show that quality is the most evaluated criterion in the selection of the suppliers. In the future, the importance of other environmental and Industry 4.0 criteria will grow. It is recommended combining supplier evaluation and reviews with the feedback to the suppliers to improve the performance of the suppliers.Originality/Value of paper: The study compares the enterprises in terms of their size and industries in the area of supplier performance management characteristics. These criteria are often not mentioned nor compared in other publications.

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The Ideal Criteria of Supplier Selection for SMEs Food Processing Industry

Cited by 9 publications

References 18 publications

Integration of the AHP-TOPSIS Approach in Material Supplier Selection

Integration of the AHP-TOPSIS Approach in Material Supplier Selection

Food supplier selection in the catering industry using the analytic hierarchy process

Supplier Performance Management in Context of Size and Sector Characteristics of Enterprises

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