Critical Success Factors For Supplier Selection: An Update

S. Hossein Cheraghi · Mohammad Dadashzadeh · Muthu Subramanian

169 citations0/0 files storedJournal of Applied Business Research (JABR)

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

Abstract

For many organizations effective supplier evaluation and purchasing processes are of vital importance. As the pace of market globalization quickens, the number of potential suppliers and the number of factors to consider when selecting suppliers increases. In this paper we present the critical success factors (CSFs) for supplier selection reported in the literature emanating from the seminal work of Dickson and provide an update based on reviewing more than 110 research papers. Our study indicates significant change in the relative importance of various critical success factors in the research reported during 1966-1990 versus 1990-2001. Increased competition and globalization of markets facilitated by Internet-based technologies have combined to dramatically change the ranking of factors while introducing new criteria to the supplier selection process. Based on the results of this study, we conclude that supplier selection criteria will continue to change based on an expanded definition of excellence to include traditional aspects of performance (quality, delivery, price, service) in addition to non-traditional, evolving ones (just-in-time communication, process improvement, supply chain management).

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References

1991Vendor selection criteria and methods 1966An Analysis Of Vendor Selection Systems And Decisions 1998A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming 1986A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR 1994Vendor Selection Using Interpretive Structural Modelling (ISM)1973A Model of Industrial Buyer Behavior 1996An exploration of supplier selection practices across the supply chain 1990The Supplier Selection Decision in Strategic Partnerships

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