An analysis of the supplier selection process

Customers select suppliers based on the relative importance of different attributes such as quality, price, flexibility, and delivery performance. This study examines the difference between managers' rating of the perceived importance of different supplier attributes and their actual choice of...

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Bibliographic Details
Published in:Omega (Oxford) 1998-12, Vol.26 (6), p.739-750
Main Authors: Verma, Rohit, Pullman, Madeleine E.
Format: Article
Language:English
Subjects:
Applied sciences
choice process
Conjoint analysis
Decision analysis
Exact sciences and technology
Inventory control, production control. Distribution
Likert scale
Measurement
measurement and methodology
Operational research and scientific management
Operational research. Management science
Purchasing
purchasing conjoint analysis choice process supply chain management measurement and methodology
Studies
Suppliers
supply chain management
Supply chains
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Summary:Customers select suppliers based on the relative importance of different attributes such as quality, price, flexibility, and delivery performance. This study examines the difference between managers' rating of the perceived importance of different supplier attributes and their actual choice of suppliers in an experimental setting. We use two methods: a Likert scale set of questions, to determine the importance of supplier attributes; and a discrete choice analysis (DCA) experiment, to examine the choice of suppliers. The results indicate that although managers say that quality is the most important attribute for a supplier, they actually choose suppliers based largely on cost and delivery performance.
ISSN:0305-0483
1873-5274
DOI:10.1016/S0305-0483(98)00023-1