The Selection of Suppliers Essay Example | Topics and Well Written Essays - 3000 words

The Selection of Suppliers - Essay Example Having done the reviews, considered the more subtle differences among the criteria and then developed a table containing all key criteria for selecting the suppliers The selection of the four projects was aimed to analyze the application of various criteria and consequently check the effectiveness of results in each case. Last but not least it was found that a developing a proper strategy in connection with selecting the suppliers is equally important to building any other business strategy. I conclude by referring to one of the diversification strategies – i.e. â€Å"Vertical Integration† introduced by Igor Ansoff. The vertical integration refers to either becoming your own supplier or become a distributor. It shows that sometimes suppliers become so problematic for a firm that it has to take such a turnaround strategy for buying a supplier. Introduction: In this competitive global market, every organization desires to accomplish its projects successfully. To ensure th e timely and successful completion of a project, firms need to analyze all possible pros & cons and then opt for the best solution – right from procurement to production of finished goods. It is a myth that in manufacturing supply chain management is not only the lifeline of any project but also decides a success or failure thereof.. Selection of suppliers, being a part of supply chain management, involves many criteria that govern the selection of suppliers. These criteria include quality of raw material, lead time required by the supplier, cost of raw material, delivery time, resources/ability for delivery, supplier’s reputation, etc. etc.. This paper intends to discuss these supplier selection criteria by analyzing the practical projects. The four different projects chosen include the production of electronic products, construction of a retail outlet, manufacturing glass containers and construction of residential buildings. The criteria for selection of suppliers fo llowed by these projects include quality of raw material, delivery time, cost of material and supplier’s reputation, respectively. Having analyzed these criteria, a comparison has been presented along with critiques and finally identified the best method to be opted for selecting the suppliers. Literature Review: Every business, in one way or other, is impacted due to stiff competition, increased globalization and unabated technological advancements. In such a prevailing hyper-competition, effective supply chain management has become not only important but also become a core of corporate strategy. Coyle, Bardi, and Langey (2003) pointed out that in order to cope-up with such a crucial business trend, it has become mandatory for the logistics managers to concentrate more on suppliers’ capabilities, conceptualizing, designing, and implementing the supply process. Traditionally, only a few criteria used to be followed in a supplier’s selection – i.e. materi al cost, delivery time and quality of goods (Smith et al. 1963).