Developing and applying a supplier selection model to account for supplier risk impacts

• Autores: Frank Straube, Christian F. Durach, Jonny Phung
• Localización: Supply Chain Forum: International Journal, ISSN-e 1624-6039, Vol. 17, Nº. 2, 2016, págs. 68-77
• Idioma: inglés
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• Resumen

  • In this article, we develop a model to analyse and evaluate impacts of supplier selection decisions on total purchasing costs – that is total landed cost including a supplier risk premium. The newly developed model allows transferring risks related to supplier selection into a monetary value. This will allow managers to add a risk premium to actual costs, allowing more informed sourcing decisions. We reviewed scientific literature, for this purpose, to derive important criteria and methods in the supplier selection process and defined multiple indicators to measure a company’s purchasing performance. To refine our model, we applied it on a case study on the Chinese’s entity of a globally operating manufacturing firm that recently replaced its global suppliers with local Chinese suppliers