Evaluating the critical success factors of supplier development: a case study

Srikanta Routroy · Sudeep kumar Pradhan

68 citations0/0 files storedBenchmarking An International Journal

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Quality and Supply Management Multi-Criteria Decision Making Outsourcing and Supply Chain Management

Abstract

Purpose The purpose of this paper is to identify and evaluate the critical success factors (CSFs) responsible for supplier development (SD) in a manufacturing supply chain environment. Design/methodology/approach In total, 13 CSFs for SD are identified (i.e. long‐term strategic goal; top management commitment; incentives; supplier's supplier condition; proximity to manufacturing base; supplier certification; innovation capability; information sharing; environmental readiness; external environment; project completion experience; supplier status and direct involvement) through extensive literature review and discussion held with managers/engineers in different Indian manufacturing companies. A fuzzy analytic hierarchy process (FAHP) is proposed and developed to evaluate the degree of impact of each CSF on SD. Findings The degree of impact for each CSF on SD is established for an Indian company. The results are discussed in detail with managerial implications. The long‐term strategic goal is found to be the most significant CSF for successful SD implementation. Research limitations/implications This study has not been statistically validated in a manufacturing supply chain environment for complete acceptability. Practical implications The simplicity and clarity of the proposed approach enhances its acceptability for evaluating CSFs in manufacturing supply chain environment. It also provides the direction for optimally allocating the efforts and resources for successful implementation of SD in short duration. Originality/value Although both CSFs and SD have been widely researched, but no study has been reported in the literature to prioritize and rank the CSFs of SD in an Indian manufacturing environment. The paper contributes to research in the supply chain management area in general and SD in particular for manufacturing environment. The proposed approach has the ability to capture the judgment of multiple experts to prioritize and rank CSFs for SD.

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References

1985The Analytic Hierarchy Process 1996Applications of the extent analysis method on fuzzy AHP 2000Creating and managing a high-performance knowledge-sharing network: the Toyota case 2004Innovativeness: Its antecedents and impact on business performance 2004Innovativeness: Its antecedents and impact on business performance 2003Multi‐criteria supplier selection using fuzzy AHP 2006The relationships between supplier development, commitment, social capital accumulation and performance improvement 2004The development and validation of the organisational innovativeness construct using confirmatory factor analysis

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2020Barriers for green supplier development programs in manufacturing industry 2018Importance of innovation and flexibility in configuring supply network sustainability 2021Multi-criteria decision-making toward supplier selection: exploration of PROMETHEE II method 2016A negotiation-based algorithm to coordinate supplier development in decentralized supply chains 2014Application of Critical Success Factors in Supply Chain Management

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