The Sustainability Of The Supplier - 1475 Words

Introduction Selecting suppliers by lowest price or nearest location which has been used since ancient times is not sufficient in today’s competitive environment. Nowadays selecting supplier has been an important decision that affects the organisation objectives. So researches have been conducted and case studies have been explored and investigated to reach the optimal approach to select a supplier that satisfies both customers and stakeholders and to achieve the organisation goals. Therefore, a multi-criteria decisionmaking process should be adapted to execute supplier selection operation properly. Resources selection needs to go through many steps to assist decision-makers to do their job elaborately. Sustainability of the supplier has†¦show more content†¦Does one reliable resource is enough to maintain sustainability? How is that affecting the multiplicity of suppliers? This research will also outline the main obstacles that affect the decision making for the selection of the sustainable resource. Literature Review Supplier selection Basic and old methods of selecting suppliers had considered only the economic aspects. These methods cannot meet the necessity of today’s businesses, and therefore, social and environmental aspects have to be included in supplier selection to develop and enhance the organisation performance. One of the key problems in Supply Chain Management SCM is supplier selection (Wu and Barnes, 2011 and Huang and Keskar, 2007). This is a complicated multi-criteria decision-making problem (Chai, Liu, Ngai, 2013). Supplier selection process can be explained as a multi- criteria decision-making problem with discordant and different goals. Also, this process consumes more time to exploit the data. In organisations, the substantial purchasing decision is selecting a reliable supplier, which helps to reduce production costs and enhance production quality and customer satisfaction. Choosing an appropriate supplier considerably reduces cost, causes to competitive advantage and increases the leve l of customer satisfaction (Nazeri et al. 2011). Reliable supplier selection is an essential strategic decision for the organisation to develop the top quality of production