Supplier evaluation and selection in the constrained environment of advance purchasing
Journal of Global Operations and Strategic Sourcing
ISSN: 2398-5364
Article publication date: 3 February 2023
Issue publication date: 9 August 2023
Abstract
Purpose
The purpose of this study is to address supplier evaluation and selection in a constrained environment of advance purchasing. The study presents the potential solutions to supplier evaluation and selection issues in the Indian automobile sector where advance purchases are carried out to fulfill the supply chain demand.
Design/methodology/approach
Based on the literature review and expert elicitation, nine major factors which are responsible for the successful implementation of supplier selection in a constrained environment of advance purchasing are identified. This paper explores supplier selection in constrained environment issues based on an integrated method based on Shannon entropy, analytic hierarchy process (AHP) techniques and failure mode effects analysis (FMEA).
Findings
Analysis of the results of the study suggests that traditional suppliers are not suitable in advance purchasing scenarios; hence, criteria developed in this paper to accommodate the requirement of advance purchasing with possible risk considerations are of high importance. This research paper is an original attempt to develop supplier selection criteria for advance purchasing with special identification of deliverability, flexibility, innovation and productivity factors through a case demonstration.
Research limitations/implications
This study uses data from secondary sources, literature reviews and expert opinions. It formalizes the important factors of successful supplier selection in the constrained environment of advance purchasing in the automotive industry context.
Practical implications
The paper shows how the engagement of suppliers through advance purchasing helps automotive companies in developing a competitive advantage. The integrated approach of Shannon entropy, AHP techniques and FMEA is an effective and useful method that can be applied to the supplier selection process.
Originality/value
The proposed FMEA-AHP method integrated with Shannon entropy used for evaluation represents a useful tool to embrace the suitable functioning tactics for efficient supplier selection. The study is unique as supplier evaluation and selection in a constrained environment of advance purchasing is not investigated much and has good industry applicability.
Keywords
Acknowledgements
The authors would like to thank industry experts (names are confidential) for their assistance, help and insights provided during this study and survey. This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.
Data availability statement: Data sharing does not apply to this article due to privacy and ethical concerns, neither the data of industry experts nor its source can be made available to the public.
No conflict of interest to report.
Citation
Prakash, S., Arora, A., , N., Prakash, C. and Srivastava, A. (2023), "Supplier evaluation and selection in the constrained environment of advance purchasing", Journal of Global Operations and Strategic Sourcing, Vol. 16 No. 3, pp. 661-682. https://doi.org/10.1108/JGOSS-12-2021-0103
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited