Selecting critical suppliers for supplier development to improve supply management

摘要

In a supply chain, the upper echelons plays a key role in tuning the chain performance. In the procurement cycle of the supply chain, the manufacturer outsources more parts and services to focus on their own core competencies. A situation may arise in which some suppliers may under perform in providing critical strategic supplies. This paper analyzes supplier performance using multi-criteria decision procedure along with Pareto analysis in identifying sub-optimal suppliers to be included in the supplier development to optimize the supply chain performance.