Development of questionnaire to assess the supplier evaluation criteria and supplier selection benefits

The influence of the quality criteria on the quality cost of suppliers in SMEs

Purpose

After quality costing, most companies do not know how to invest in supplier quality improvement. This study aims to develop a comprehensive model for the effect of supplier quality criteria on supplier quality costs.

Design/methodology/approach

The independent variable of supplier quality criteria and the dependent variable of supplier quality costs have been identified based on a literature review. Then a model has been developed for the effect of the variables. A questionnaire has been designed and distributed to 158 small and medium enterprises (SMEs) in Jey Industrial Town located in the Isfahan Province. Structural equation modeling and partial least square structural equation modeling (PLS-SEM) have been used for data analysis.

Findings

Supplier quality criteria influenced supplier quality costs (with a value of 0.711). The results also implied that organizational quality had the highest impact. The appraisal costs and the internal failure costs of purchasing received most of the influence. Also, process quality and consequential costs of failure purchasing had the lowest influencing and influenced values.

Practical implications

The findings of this research encourage the managers of SMEs to evaluate and rank the most appropriate quality criteria related to quality costs for selecting a supplier as one of the most fundamental decisions in supply chain management.

Social implications

Appropriate selection of quality criteria influencing quality costs results in reduced quality cost. Quality cost reduction also results in decreased products' fixed prices. Ultimately, the company will have more competitive pricing, and consumers will benefit from such a significant advantage.

Originality/value

Studying the influence of supplier quality criteria on supplier quality costs is relatively new in the manufacturing industry. The comprehensiveness of the investigated variables is also another advantage of the proposed model.

P, Rao KV. Post-COVID-19 strategic sourcing decisions for escorting stakeholders’ expectations and supplier performance in construction project works

Purpose

The occurrence of COVID-19 has impacted the wide-reaching dimensions of manufacturing, materials, procurement, management, etc., and has loaded disruptions in the wide range of supply chain (SC) activities. The impact of COVID-19 has twisted supplier performance and influenced stakeholders’ thinking towards selecting supplier sources and making strategic sourcing decision for convinced arrangement of construction management (CM) resources. Nowadays, suppliers are intently evaluated by stakeholders in post-COVID-19 phase to induce agile availability of CM resources. Accordingly, this paper aims to demonstrate competent CM dimensions under post COVID-19 scenario for ease managing construction projects by the stakeholders.

Design/methodology/approach

The authors have implicated Grey Sets Theory along with decision-making trial and evaluation laboratory (DEMATEL) technique for understanding significant outcomes. Varieties of diverse decision aspects responsible for strategically influencing supplier sourcing decision is projected under post COVID-19 scenario for handling construction projects by the stakeholders.

Findings

This study investigated sustainable construction management dimensions (SCMD) at the stage of resource deliveries and client aspirations under post COVID-19 situation. The study demonstrated “Lead time” as the most crucial, “Product Range” as the second and “Customers dealings and relationship” as the third crucial aspect considering by the stakeholders for selecting supplier sources based on the attainment of performance score of 0.1338, 0.1273 and 0.1268, respectively. It is found that high lead time stimulates the stakeholders to divert their orders to other competent supplier sources holding a low degree of lead time as compared.

Research limitations/implications

The present study rollovers its existence by serving critical thinking, conceptual modelling, criteria identification and evaluation under CM domain for drafting effectual strategies by the suppliers. The study investigated the impact of COVID-19 on stakeholders’ decision-making and enlisted SCMD that strategically stimulated them in choosing supplier sourcing decision.

Originality/value

The present study realizes the insights of stakeholders in the post COVID-19 scenario related to the supplier sources based on performance score. The study quantified sustainable supplier attribute for construction work and practices. The study analysed the expectations of the stakeholders purchasing different varieties of construction materials from supplier sources for civil works in the post COVID-19 scenario.

An integrated quality and resilience engineering framework in healthcare with Z-number data envelopment analysis

Supplier selection for medical equipment is a major challenge for hospitals in healthcare supply chains. The primary reason for measuring medical equipment supplier efficiency is to achieve the highest level of overall performance and productivity in healthcare supply chains. This study presents an integrated quality and resilience engineering (QRE) framework for evaluating medical equipment suppliers' performance using structural equation modeling and Z-number data envelopment analysis (Z-DEA). Noise analysis is used to select the best α-cut for the Z-DEA model, and fuzzy data are used to handle uncertainties. We show that flexibility, conformance to standards, redundancy, cost, quality certifications, and delivery time significantly affect the medical equipment suppliers' performance. In addition, we demonstrate that the proposed integrated QRE framework is more efficient and informative than stand-alone quality engineering or resiliency engineering. We present a case study in a cardiovascular hospital to illustrate the applicability of the proposed framework for medical equipment supplier evaluation and selection. To the best of our knowledge, this is the first study to integrate QRE and Z-DEA for supplier performance evaluation in healthcare.

Development of the critical success decision criteria for an equitable order sharing in an extended enterprise

Purpose

This study identifies and ranks the appropriate critical success decision criteria (CSDC) for the bulk order distribution (sharing) amongst multiple manufacturers (suppliers) working as an extended enterprise (EE).

Design/methodology/approach

The study deploys a qualitative approach to generate the appropriate decision criteria. The balanced scorecard and Pareto's chart (using Minitab® version 18) were used for gathering and analysing the pertinent criteria.

Findings

The process of evaluating and selecting the right manufacturers is essential. Manufacturer (supplier) selection is no longer decided solely based on cost/price criterion; currently, the quality and delivery criteria prevail. Additional incorporated criteria include price/cost, technical capability, production facilities and capacity, customer satisfaction and impression, geographical location, management and organisation, financial position, environmental concern, performance history, repair service, information technology and communication systems, procedural compliance, labour relation record, reputation, flexibility or diversification, attitude, operating controls, business desire, packaging ability, past business records, trust and loyalty, training aids, complaint handling service, warranties and claim policies, reciprocal arrangements, research and development and innovation, modern slavery concern, sustainable capability, collaborative/partnership and responsiveness. The study proposed a conceptual framework of an EE alongside how manufacturers working as a single virtual entity can consider the supply chain operations reference (SCOR®) model.

Research limitations/implications

The identified CSDC are suitable for order allocation to domestic manufacturers. The deployed approaches could be extended to the mixed and quantitative approaches for increasing the generalisability.

Originality/value

The study establishes the pertinent CSDC that are important to execute equitable order distribution to manufacturers in an EE framework.

Dynamic supplier selection through optimal ranking under two-echelon system

Purpose

With the increasing competition among the industries, they remain under pressure as how to select the best set of suppliers for the competitive edge. Often, it has been challenging to develop an effective set of suppliers due to varied and asymmetric mode of criteria. The purpose of this paper is to develop a responsive chain under original equipment manufacturer (OEM).

Design/methodology/approach

This study proposes a responsive chain under a two-echelon system (TES) of OEM, which needs to collaborate with a set of suppliers at each echelon through an integrated methodology of AHP and TOPSIS. According to the OEM’s criteria, demands and suppliers’ capacity vary with time, therefore they are not static for a longer period. Hence, supplier selection (SS) problem possesses dynamicity in real practice. For this, MILP is used for finding optimal order quantities based on the optimal ranking at each echelon in the multi-period scenario. Subsequently, sensitivity analysis (SA) is conducted through Taguchi method of parameter design (TMPD) to achieve an optimal ranking in the TES.

Findings

This study suggests optimal criteria’s weight, percentage contribution, and flexibility for the suppliers and manufacturers involving through maximum demand strategy at each echelon of OEM. It also provides robust group of suppliers and manufacturers in the TES through optimal ranking and simultaneously in the order allocations. Furthermore, it restricts the number of suppliers and manufactures at each echelon through proposed methodology to obtain the solution in a very short running time.

Originality/value

To validate this model, a real data set for the case of chain conveyor company is used. This adopted methodology can suggest the organization that how the approach should be implemented.

Mind the perception gap

Purpose

A perception gap refers to the differences in perception among the stakeholders regarding any aspect of the supply chain relationship. The purpose of this paper is to investigate the perception gap among service supply chain partners relating to the relative importance of key performance indicators (KPIs) and the association of this gap with service performance.

Design/methodology/approach

This paper presents an integrative framework that combines statistical methods and data envelopment analysis for computing perception and performance gaps, and for identifying the association between the gaps. The study follows a middle-range theorizing research approach where general inferences are induced from instances, and a theory can be developed from the observation of empirical reality.

Findings

Analysis of data from a leading global insurance service supply chain suggests that perception gap exists and can be recognised as a factor associated with performance gaps. The results suggest that the perception gap not only affects performance but can also be tracked as a meta-KPI to improve performance throughout the service supply chain.

Practical implications

The key implication of the presented research is that service companies can identify and resolve the differences in perceptions regarding the importance of the KPIs, by methodologically computing the gaps and tracking them as meta-KPIs.

Originality/value

The study extends the theoretical boundary of supply chain performance management by introducing the perception and performance gaps as novel meta-KPIs. These meta-KPIs can be computed through the integrative framework developed in the study.

Integrated dynamic vendor selection and order allocation problem for the time dependent and stochastic data

Purpose

In this paper, vendor selection and order allocation problem is considered for a buyer dealing in multiple products to be supplied by multiple vendors. Each product has an associated lead time with stochastic demand having stochastic capacity for each vendor across entire time period. Uncertainties related to costs which are further influenced by the periodically changing incremental quantity discounts offered by various vendors. The purpose of this paper is to find an optimal trade-off of vendor selection and order allocation in the presence of uncertainties involving multiple conflicting objectives such as cost minimization, service level/quality level maximization and delivery lead time minimization concurrently.

Design/methodology/approach

Vendor selection problem considered here has a multi-objective optimization design subject to a set of demand, capacity and quantity discount based constraints. These constraints as well as uncertainty related to lead time have been handled using chance constraint approach. The problem is titled as “integrated dynamic vendor selection problem (IDVSP).” The proposed multi-objective IDVSP is solved using both non-pre-emptive goal programming (GP) and weighted sum aggregate objective function (AOF) technique.

Findings

Findings indicate goal achievement for different objectives from both non-pre-emptive GP and AOF procedure. While the goals are satisfactorily achieved as per the target values for cost and lead time, quality/service level was somewhat compromised in order to find an appropriate trade off.

Originality/value

The research work is original as it integrates dynamic as well as stochastic (uncertain) nature of supply chain simultaneously coupled with the concept of incremental quantity discounts on lot sizes.