Role of Supplier Evaluation Criteria in Risk Mitigation Related to Purchasing Process

• Autorzy: Maciej Urbaniak
• Języki publikacji: EN

Abstrakty

EN

The article aims to present the role of supplier evaluation criteria in reducing purchasing risk. Before a purchasing enterprise starts cooperating with suppliers, it set specific requirements and expectations. The fulfilment of these requirements and expectations is verified through the evaluation of suppliers. Evaluation results should indicate potential risks that may arise in the development of partnership cooperation. The article includes the results of empirical research conducted using the computer-assisted telephone interviewing (CATI) technique in medium and large manufacturing companies operating in Poland. The results of the conducted empirical research indicate that companies wishing to partner with suppliers try to limit the level of risk associated with purchases. When evaluating suppliers, manufacturers focus mainly on reducing the risk associated with the defective technical quality of products, timely deliveries, delivery flexibility, time to restore continuity of deliveries, completeness of order fulfilment and delivery documentation, as well as price competitiveness. Also, in the evaluation of suppliers, companies operating in Poland are beginning to pay attention to the reduction of negative environmental impact. (original abstract)

Słowa kluczowe

EN

Supplier selection criteria; Purchase management; Risk; Management standards

PL

Kryteria wyboru dostawcy; Zarządzanie zakupem; Ryzyko; Standaryzacja zarządzania

• Czasopismo: Engineering Management in Production and Services
• Rocznik: 2021
• Numer: nr 2
• Strony: 96--106

Twórcy

autor

Maciej Urbaniak

• University of Lodz, Poland

Bibliografia

• Afshan, N. (2013). The performance outcomes of dimensions of supply chain integration: a conceptual framework. Business: Theory and Practice, 14(4), 323-331. doi: 10.3846/btp.2013.34
• Aksoy, A., & Ozturk, N. (2011). Supplier selection and performance evaluation in just-in-time production environments. Expert Systems with Applications, 38, 6351-6359. doi: 10.1016/j.eswa.2010.11.104
• Alikhani, R., Torabi, S.A., & Altay, N. (2019). Strategic supplier selection under sustainability and risk criteria. International Journal of Production Economics, 208, 69-82. doi: 10.1016/j.ijpe.2018.11.018
• Asif, M., Jajja, M.S.S., & Searcy, C. (2019). Social compliance standards: Re-evaluating the buyer and supplier perspectives. Journal of Cleaner Production, 227(1), 457-471. doi: 10.1016/j.jclepro.2019.04.157
• Bakshi, N., & Kleindorfer, P. (2009). Co-opetition and Investment for Supply-Chain Resilience, Production and Operations Management, 18(6), 583-603. doi: 10.1111/j.1937-5956.2009.01031
• Bebr, L., Bícová, K., & Zídková, H. (2017). Use of the ppm and its function in the production process. Procedia Manufacturing, 13, 608-615. doi: 10.1016/j.promfg.2017.09.122
• Castillo-Martinez, A., Medina-Merodio, J.-A., Gutierrez-Martinez, J.-M., & Fernández-Sanz, L. (2021). Proposal for a maintenance management system in industrial environments based on ISO 9001 and ISO 14001 standards. Computer Standards & Interfaces, 73, 103453. doi: 10.1016/j.csi.2020.103453
• Chen, L., Zhao, X., Tang, O., Price, L., Zhang, Sh., & Zhu, W. (2017). Supply chain collaboration for sustainability: A literature review and future research agenda. International Journal of Production Economics, 194, 73-87. doi: 10.1016/j.ijpe.2017.04.005
• Demir, L., Akpınar, M.E., Araz, C., & Ilgın, A.M. (2018). A green supplier evaluation system based on a new multi-criteria sorting method: VIKORSORT. Expert Systems With Applications, 114, 479-487. doi: 10.1016/j.eswa.2018.07.071
• Esmaeili-Najafabadi, E., Azad, N., & Nezhad, M.S.F. (2021). Risk-averse supplier selection and order allocation in the centralized supply chains under disruption risks. Expert Systems With Applications, 175, 114691. doi: 10.1016/j.eswa.2021.114691
• Ferrón-Vílchez, V. (2016). Does symbolism benefit environmental and business performance in the adoption of ISO 14001? Journal of Environmental Management, 183, 882-894. doi: 10.1016/j.jenvman.2016.09.047
• Foerstl, K., Reuter, C., Hartmann, E., & Blome, C. (2010). Managing supplier sustainability risks in a dynamically changing environment-Sustainable supplier management in the chemical industry. Journal of Purchasing & Supply Management, 16, 118-130. doi: 10.1016/j.ijpe.2020.107830
• Galanhashi, M.R., Helmi, S.A., & Hashemzah, P. (2016). Supplier selection in automobile industry: A mixed balanced scorecard-fuzzy AHP approach. Alexandria Engineering Journal, 55(1), 93-100. doi: 10.1016/j.aej.2016.01.005
• Glavee-Geo. R. (2019). Does supplier development lead to supplier satisfaction and relationship continuation? Journal of Purchasing and Supply Management, 25(3), 100537. doi: 10.1016/j.pursup.2019.05.002
• Gligor, D. (2020). Birds of a feather: The impact of race on the supplier selection and evaluation process. International Journal of Production Economics, 230, 107802. doi: 10.1016/j.ijpe.2020.107802
• Govindan, K., Rajendran, S., Sarkis, J., & Murugesan, P. (2015). Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. Journal of Cleaner Production, 98(July), 66-83. doi: 10.1016/j.jclepro.2013.06.046
• Guarnieria, P., & Trojan, F. (2019). Decision making on supplier selection based on social, ethical, and environmental criteria: A study in the textile industry. Resources, Conservation & Recycling, 141, 347-361. doi: 10.1016/J.RESCONREC.2018.10.023
• Hawkins, T.G., Gravier, M.J., & Muir, W.A. (2020). The role of supplier performance evaluations in mitigating risk: Assessing evaluation processes and behaviors. Industrial Marketing Management, 87, 2-17. doi: 10.1016/j.indmarman.2020.03.004
• Holmen, E., Aune, T.B., & Pedersen, A-Ch. (2013). Network pictures for managing key supplier relationships. Industrial Marketing Management, 42, 139-151. doi: 10.1016/j.indmarman.2012.12.003
• Hosseini, S., Morshedloub, N., Ivanov, D., Zarder, M.D., Barker, K., & Khaled, A.A. (2019). Resilient supplier selection and optimal order allocation under disruption risks. International Journal of Production Economics, 213, 124-137. doi: 10.1016/j.ijpe.2019.03.018
• Jenssen, M.M., & de Boer, L. (2019). Implementing life cycle assessment in green supplier selection: A systematic review and conceptual model. Journal of Cleaner Production, 229, 1198-1210. doi: 10.1016/j.jclepro.2019.04.335
• Kaur, H., & Singh, S.P. (2021). Multi-stage hybrid model for supplier selection and order allocation considering disruption risks and disruptive technologies. International Journal of Production Economics, 231, 107830. doi: /10.1016/j.ijpe.2020.107830
• Lahane S., & Kant, R. (2021). Evaluation and ranking of solutions to mitigate circular supply chain risks. Sustainable Production and Consumption, 27, 753-773. doi: 10.1016/j.spc.2021.01.034
• Li W.-Y., Chow, P.-S., Choi, T.-M., & Chan, H.-L. (2016). Supplier integration, green sustainability programs, and financial performance of fashion enterprises under global financial crisis. Journal of Cleaner Production, 135, 57-70. doi: 10.1016/j.jclepro.2016.06.048
• Lixandru, C.G. (2016). Supplier quality management for component introduction in the automotive industry. Procedia - Social and Behavioral Sciences, 221, 423-432. doi: 10.1016/j.sbspro.2016.05.132
• Jum'a, L. (2020). The effect of value-added activities of key suppliers on the performance of manufacturing firms. Polish Journal of Management Studies, 22(1), 231-246. doi: 10.17512/pjms.2020.22.1.15
• Mensah, P., & Merkuryev, Y. (2014). Developing a resilient supply chain. Procedia - Social and Behavioral Sciences, 110, 309-319. doi: 10.1016/j.sbspro.2013.12.875
• Mokhtar, S., Bahri, P.A., Moayer, S., & James, A. (2019). Supplier portfolio selection based on the monitoring of supply risk indicators. Simulation Modelling Practice and Theory, 97, 101955. doi: 10.1016/j.simpat.2019.101955
• Murphy, M., & Sashi, C.M. (2018). Communication, interactivity, and satisfaction in B2B relationships. Industrial Marketing Management, 68, 1-12. doi: 10.1016/j. indmarman.2017.08.020
• Nagel, D.M., Giunipero, L., Jung, H., Salas, J., & Hochstein, B. (2021) Purchaser perceptions of early phase supplier relationships: The role of similarity and likeability. Journal of Business Research, 128, 174-186. doi: 10.1016/j.jbusres.2021.01.026
• Nasr, W.W., & Jaber, M.Y. (2019). Supplier development in a two-level lot sizing problem with non-conforming items and learning. International Journal of Production Economics, 216, 349-363. doi: 10.1016/j. ijpe.2019.06.022
• Negash, Y.T., Kartika, J., Tseng, M.-L., & Tan, K. (2020). A novel approach to measure product quality in sustainable supplier selection. Journal of Cleaner Production, 252, 119838. doi: 10.1016/j.jclepro.2019.119838
• Ogunranti, G.A., Ceryan, O., & Banerjee, A. (2021). Buyer-supplier currency exchange rate flexibility contracts in global supply chains. European Journal of Operational Research, 288, 420-435. doi: 10.1016/j. ejor.2020.05.053
• Padgett, D., Christopher, D., Hopkins, Ch.D., & Williams, Z. (2020). Buyer dependence in B2B relationships: The role of supplier investments, commitment form, and trust. Journal of Business Research, 119, 13-24. doi: 10.1016/j.jbusres.2020.07.019
• Pan, X., Zang, Sh., Hu, Y., & Liu, J. (2020). Identifying the positive sides of power use between (in)congruence in distributive fairness perception and supplier-buyer relationship quality. Industrial Marketing Management, 91, 362-372. doi: 10.1016/j.indmarman.2020.09.013
• Pernot, E., & Roodhooft, F. (2014). The impact of inter-organizational management control systems on performance: A retrospective case study of an automotive supplier relationship. International Journal of Production Economics, 158, 156-170. doi: 10.1016/j. ijpe.2014.07.029
• Pun, H., & Heese, S.H. (2014). Outsourcing to suppliers with unknown capabilities. European Journal of Operational Research, 234, 108-118. doi: 10.1016/j. ejor.2013.10.068
• Rogers, Z.S., Carter, C.R., & Kwan, V. (2019). Making tough choices: A policy capturing approach to evaluating the tradeoffs in sustainable supplier development initiatives. Journal of Purchasing and Supply Management, 25, 100574. doi: 10.1016/j.pursup.2019.100574
• Sarkar, A., & Mohapatra, P.K.J. (2006). Evaluation of supplier capability and performance: A method for supply base reduction. Journal of Purchasing and Supply Management, 12(3), 148-163. doi: 10.1016/j.pursup.2006.08.003
• Shishodia, A., Verma, P., & Dixit, V. (2019). Supplier evaluation for resilient project driven supply chain. Computers & Industrial Engineering, 129, 465-478. doi: 10.1016/j.cie.2019.02.006
• Su, H. Ch., Kao, T-W.D., & Linderman, K. (2020). Where in the supply chain network does ISO 9001 improve firm productivity? European Journal of Operational Research, 283, 530-540. doi: 10.1016/j.ejor.2019.11.042
• Taherdoost, H., & Brard, A. (2019). Analyzing the Process of Supplier Selection Criteria and Methods. Procedia Manufacturing, 32, 1024-1034. doi: 10.1016/j.promfg.2019.02.317
• Torabi, S.A., Baghersad, M., & Mansouri, S.A. (2015). Resilient supplier selection and order allocation under operational and disruption risks. Transportation Research Part E, 79, 22-48. doi: 10.1016/j.tre.2015.03.005
• Ulaga, W., & Eggert, A. (2006). Value-based differentiation in business relationships: Gaining and sustaining key supplier status. Journal of Marketing, 70(1), 119-136. doi: 10.1509/jmkg.2006.70.1.119
• van den Brink, S., Kleijn, R., Tukker, A., & Huisman, J. (2019). Approaches to responsible sourcing in mineral supply chains. Resources, Conservation & Recycling, 145, 389-398. doi: 10.1016/j.resconrec.2019.02.040
• Wagner, S. M. (2011). Supplier development and the relationship life-cycle. International Journal of Production Economics, 129(2), 277-283.
• Winter, S., & Lasch, R. (2016). Environmental and social criteria in supplier evaluation - Lessons from the fashion and apparel industry. Journal of Cleaner Production, 139, 175-190. doi: 10.1016/j.jclepro.2016.07.201
• Yan, L., Zhang, L., Liang, W., Li, W., & Du, M. (2017). Key factors identification and dynamic fuzzy assessment of health, safety and environment performance in petroleum enterprises. Safety Science, 94, 77-84. doi: 10.1016/j.ssci.2016.12.022

Identyfikatory

DOI

https://doi.org/10.2478/emj-2021-0015