Abstract
Supplier selection is currently a subject of great importance to companies. Numerous articles have been published recently, recommending different methods and/or procedures for evaluating and selecting the suppliers with whom the purchasing company will work. The present article reviews a total of 39 articles dealing with this subject, published between 2007 and the present day, in magazines indexed by Journal Citation Reports (in ISI Web of Knowledge). They will be analyzed in order to determine: (i) procedures used in determining criteria, (ii) identification and structure of the criteria under consideration, (iii) methods used to evaluate and select the suppliers and (iv) aims in the selection of suppliers.
Access provided by Autonomous University of Puebla. Download conference paper PDF
Similar content being viewed by others
Keywords
1 Introduction
Supplier selection is one of the strategic elements in managing purchases, as the ability of a company to satisfy its clients, as well as its own continuity, depends to a large extent on its suppliers.
Purchases have a direct and important impact on profits, as the acquired products and services (purchases), have a significant influence on the cost structure of manufacturing companies, ranging from 42 to 79 %. On the other hand, there is a larger framework which defines the general policies of organizations with respect to their relationships with suppliers, some examples being the establishment of partnership deals or global supply chain management.
Supplier selection is basically determined by four decisions, which are: (1) Having the appropriate procedure for determining the criteria and establishing their structure and ranking. (2) Identifying the criteria with which the suppliers will be evaluated. (3) Selecting the most suitable suppliers from those available. (4) Obtaining a list of suppliers, the Suppliers Panel, with whom orders will be placed.
This process involves different types of criteria (strategic, tactical, and operational) which are cohesive, as they originated in corporate strategy and are in consonance with it.
The described situation has motivated the present article, which reviews a total of 39 articles dealing with this subject, published between 2007 and the present day, in magazines indexed by Journal Citation Reports (in ISI Web of Knowledge). They all deal with the subject of supplier evaluation and selection.
This article is organized in such a way that the following section includes an analysis of the principal aspects and, finally, Sect. 3 shows the conclusions which can be drawn from this review of the latest developments.
2 Analysis of the Latest Developments (Since 2007)
The most recent theories on supplier selection are organized according to the 4 decisions mentioned in the introduction, in a way that Sect. (2.1) analyzes the procedures for determining the criteria, and Sect. (2.2) studies the criteria used for supplier selection. Sect. (2.3) describes the methods used to evaluate and select the suppliers, while Sect. (2.4) analyzes the aims of the different works on the subject of supplier selection.
2.1 Procedures for Determining Criteria
The criteria used for evaluating and selecting suppliers depend on the procedures used for determining them. In this context it can be seen that the most frequently used source is consultation with experts (19 articles, 57.5 %), either as a unique source (15 articles, 45.4 %) or reinforced by a review of the available literature (4 articles, 12.1 %). A detailed analysis shows that some articles described the methodology used, whereas others do not specify how the information was obtained. The experts may either be employees of the purchasing company or others who are familiar with the industry.
The second most used source is the review of literature; 6 (18.2 %) articles are used as a unique source as well as the previously mentioned case of 4 (12.1 %) in conjunction with the experts. Not one article describes how the review was carried out.
There is just one article [12] which describes a specific method, the QFD (Quality Function Deployment) which translates shareholders’ needs into criteria for supplier selection. There are seven articles (21.21 %) that do not specify the procedure used.
2.2 Identifying the Criteria for Obtaining the Panel
The panel of suppliers is made up of those suppliers who have best satisfied the criteria of the purchasing company. These criteria can be grouped and ranked according to families. Analysis of the articles shows how each author opts for different ways of structuring them, only coinciding in one case. The present study uses the families proposed by Erdem and Göçen [7], “Assets and Infrastructure, Costs, Logistics and Quality”; these authors propose an exhaustive classification obtained from reviewing the literature and interviewing experts. The criteria can also be grouped according to their typology: strategic, tactical and operational.
Table 1 classifies the criteria of the articles according to their family and typology, taking each criterion as distinct (not counting the number of times it is repeated in different articles). Table 2 includes the repeats of each criterion, the number of times it is cited in the different articles.
Tables 1 and 2 show that a total of 380 criteria were mentioned, of which 188 are distinct. Detailed analysis of the distinct criteria shows a very disparate level of detail, some criteria being very generic (e.g. technique) and others which are more specific (e.g. the number of Rejected items at entry quality level).
Regarding Typology, the most common are strategic criteria (98 criteria, 52.13 %), although if the total number of articles citing them is taken into account the number drops (158 criteria, 41.58 %). There are 32 criteria (17 %) of a tactical nature, representing 34.74 % of citations. Finally, there are 58 operational criteria (30.85 %) which make up 23.68 % of all citations.
To determine the level of criteria standardization, the ratio between the number of citations and the number of distinct criteria is determined, resulting in: “Assets and Infrastructure” (1.75), “Cost” (2.32), “Logistics” (2.88) and Quality (2.15). The family with the highest number of criteria is “Assets and Infrastructure” with 1.75 citations per criterion. This is due to the fact that 75 of the criteria have only one citation; this family reflects the specific cases of the company concerned, leading to fewer repeated criteria. The other three families have fewer distinct criteria and higher levels of repetition, which indicates that their criteria are used by different authors; there is more consensus and a certain standardization.
Table 3 shows the most mentioned criteria, a total of 11, which have five or more repeats, and which show a high degree of concentration, as the 11 criteria (5.85 %) have a total of 123 citations (32.36 %).
There are 156 criteria (82.97 % of the total) that have two or more citations, representing 49.47 % of the criteria of all the articles.
2.3 Methods of Evaluating and Selecting Suppliers
The methods used to evaluate and select suppliers are very diverse, and Table 4 includes a correlation of all those found in the analyzed articles and the total number of times each one has been used.
Analysis of Table 4 shows that there is a great variety of methods, finding 25 different methods in a total of 35 articles. The principal ones are: Analytic Hierarchy Process (AHP) + mathematical programming (four articles) and those based solely on mathematical programming (five articles). A detailed study of those that include mathematical programming shows how the authors opted for different procedures and so, as each one is practically unique; there are 34 different methods and only one repetition. It can also be seen that 17 of the articles (48.6 %) use the AHP or its variations (ANP, Fuzzy AHP, Fuzzy ANP).
2.4 Objectives in Selecting Suppliers
The selection of suppliers, in general, has the aim of determining a number N of suppliers and forming a panel of suppliers. An analysis of the current situation shows that the articles suggest different methods:
-
1.
Articles which recommend a ranking of suppliers (23 articles), normally in descending order according to their weight. In general the values of their weight show the degree to which each supplier satisfies the client’s needs. Their value is composed of the relative weight of the criteria for the client and the degree to which each supplier satisfies each criterion.
-
2.
Articles that classify the suppliers in binary fashion (3 articles), only including those who are suitable in the panel. The result of the selection is as follows: supplier selected/not selected [1], supplier efficient/inefficient [34].
-
3.
Articles that propose different solutions to the anterior:
-
3.1
Articles that select suppliers without creating a panel (8 articles); directly assigning orders to the cloud of suppliers [23], or obtaining a ranking which is not based on weight or binary classification; one example is the classification of suppliers according to their partnership consideration [3].
-
3.2
Two articles that analyze other aspects arising from the selection process: a comparison of the weight of criteria in different countries [28] and the analysis to determine whether the relationship with suppliers should be long or short term [18].
-
3.1
3 Conclusions
Purchasing management is strategic and supplier selection one of the most decisive processes. In this paper, a review of current thinking in selecting suppliers demonstrates the inexistence of a general model for determining the panel of suppliers, while showing a great diversity in the methods used for creating the panel. Each proposal is almost unique, with those articles that use the AHP or its variations standing out.
There is no standardization in the criteria themselves nor in the ways of classifying or ranking them. In general, the criteria are determined in two ways: consultation with experts and reviewing the literature, and a detailed analysis shows the wide variety of procedures used. Therefore it can be stated that there is a lack of standards for determining and classifying criteria, which currently depends on the decision-maker’s experience.
Almost all the articles deal with different industrial sectors (automobiles, electronics, …), and only one was found which dealt with the service sector [8], presenting a method of decision making, in the case of an airline company, to solve the problem of supplier selection in subcontracting services.
Future research works may include: (i) expand the scope of the review focusing on criteria and validate the lack of standards detected: (ii) implement the stages of supplier selection in the area of services.
References
Aksoy A, Öztürk N (2011) Supplier selection and performance evaluation in just-in-time production environments. Expert Syst Appl 38(5):6351–6359
Amin SH, Razmi J, Zhang G (2011) Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming. Expert Syst Appl 38(1):334–342
Araz C, Ozkarahan I (2007) Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. Int J Prod Econ 106(2):585–606
Ben-David A, Gelbard R, Milstein I (2012) Supplier ranking by multi-alternative proposal analysis for agile projects. Int J Proj Manage 30(6):723–730
Burke GJ, Carrillo JE, Vakharia AJ (2007) Single versus multiple supplier sourcing strategies. Eur J Oper Res 182(1):95–112
Chen YH, Chao RJ (2012) Supplier selection using fuzzy preference relations. Expert Syst Appl 39(3):3233–3240
Erdem AS, Göçen E (2012) Development of a decision support system for supplier evaluation and order allocation. Expert Syst Appl 39(5):4927–4937
Feng B, Fan ZP, Li Y (2011) A decision method for supplier selection in multi-service outsourcing. Int J Prod Econ 132(2):240–250
Ferreira L, Borenstein D (2012) A fuzzy-Bayesian model for supplier selection. Expert Syst Appl 39(9):7834–7844
Gencer C, Gürpinar D (2007) Analytic network process in supplier selection: a case study in an electronic firm. Appl Math Modell 31(11):2475–2486
Golmohammadi D, Mellat-Parast M (2012) Developing a grey-based decision-making model for supplier selection. Int J Prod Econ 137(2):191–200
Ho W, Dey PK, Lockström M (2011) Strategic sourcing: a combined QFD and AHP approach in manufacturing. Supply Chain Manage Int J 16 (6):446–461
Kilincci O, Onal SA (2011) Fuzzy AHP approach for supplier selection in a washing machine company. Expert Syst Appl 38(8):9656–9664
Kirytopoulos K, Leopoulos V, Mavrotas G, Voulgaridou D (2010) Multiple sourcing strategies and order allocation: an ANP-Augmecon meta-model. Supply Chain Manage Int J 15 (4):263–276
Kokangul A, Susuz Z (2009) Integrated analytical hierarch process and mathematical programming to supplier selection problem with quantity discount. Appl Math Modell 33(3):1417–1429
Lee AHI (2009) A fuzzy supplier selection model with the consideration of benefits, opportunities, costs and risks. Expert Syst Appl 36(2):2879–2893
Li L, Zabinsky ZB (2011) Incorporating uncertainty into a supplier selection problem. Int J Prod Econ 134(2):344–356
Li S, Murat A, Huang W (2009) Selection of contract suppliers under price and demand uncertainty in a dynamic market. Eur J Oper Res 198(3):830–847
Lin RH (2009) An integrated FANP-MOLP for supplier evaluation and order allocation. Appl Math Modell 33(6):2730–2736
Lin CT, Chen CB, Ting YC (2011) An ERP model for supplier selection in electronics industry. Expert Syst Appl 38(3):1760–1765
Mafakheri F, Breton M, Ghoniem A (2011) Supplier selection-order allocation: a two-stage multiple criteria dynamic programming approach. Int J Prod Econ 132(1):52–57
Mansini R, Savelsbergh MWP, Tocchella B (2012) The supplier selection problem with quantity discounts and truckload shipping. Omega Int J Manage Sci 40(4):445–455
Mendoza A, Ventura JA (2012) Analytical models for supplier selection and order quantity allocation. Appl Math Modell 36(8):3826–3835
Ng WL (2008) An efficient and simple model for multiple criteria supplier selection problem. Eur J Oper Res 186(3):1059–1067
Shaw K, Shankar R, Yadav SS, Thakur LS (2012) Supplier selection using fuzzy AHP and fuzzy multi-objective linear programming for developing low caron supply chain. Expert Syst Appl 39(9):8182–8192
Toloo M, Nalchigar S (2011) A new DEA method for supplier selection in presence of both cardinal and ordinal data. Expert Syst Appl 38(12):14726–14731
Ustun O, Demirtas EA (2008) An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection. Omega Int J Manage Sci 36(4):509–521
Van der Rhee B, Verma R, Plaschka G (2009) Understanding trade-offs in the supplier selection process: the role of flexibility, delivery, and value added services/support. Int J Prod Econ 120(1):30–41
Vinodh S, Ramiya RA, Gautham SG (2011) Application of fuzzy analytic network process for supplier selection in a manufacturing organisation. Expert Syst Appl 38(1):272–280
Wu D (2009) Supplier selection: a hibrid model using DEA, decision tree and neural network. Expert Syst Appl 36(5):9105–9112
Wu WY, Sukoco BM, Li CY, Chen SH (2009) An integrated multi-objective decision-making process for supplier selection with bundling problem. Expert Syst Appl 36(2):2327–2337
Xia W, Wu Z (2007) Supplier selection with multiple criteria in volume discount environments. Omega Int J Manage Sci 35(5):494–504
Yücel A, Güneri AF (2011) A weighted additive fuzzy programming approach for multi-criteria supplier selection. Expert Syst Appl 38(5):6281–6286
Zeydan M, Çolpan C, Çobanoglu C (2011) A combined methodology for supplier selection and performance evaluation. Expert Syst Appl 38(3):2741–2751
Zhang D, Zhang J, Lai KK, Lu Y (2009) An novel approach to supplier selection based on vague sets group decision. Expert Syst Appl 36(5):9557–9563
Acknowledgements
The authors gratefully acknowledge the partial support of grant DPI2010-15614 (Ministerio de Economia y Competitividad, Spain).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this paper
Cite this paper
Moliné, J., Coves, A. (2014). Supplier Evaluation and Selection: A Review of the literature since 2007. In: Hernández, C., López-Paredes, A., Pérez-Ríos, J. (eds) Managing Complexity. Lecture Notes in Management and Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-04705-8_25
Download citation
DOI: https://doi.org/10.1007/978-3-319-04705-8_25
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-04704-1
Online ISBN: 978-3-319-04705-8
eBook Packages: EngineeringEngineering (R0)