Design of Supplier Selection Procedure in Garment Company

Abstract:

The purchase of raw materials is very influential for the quality of products produced in addition to the process of making the product itself. Therefore, how to choose the supplier from the available alternatives is something that must be done properly in the process of procurement of raw materials especially for companies with many product variations and associated with many suppliers. This paper discusses about how to make supplier selection procedure for garment company with a case on a medium scale garment company in Bandung that manufactures veil and Moslem fashion. Mapping of business processes using IDEF0 was the first step in designing of supplier selection procedure. Then performed an analysis of the process which is usually done to identify the weaknesses and strengths of the process. The next step is create a design of supplier selection procedure that is more structured and measurable. In addition, also designed a tool that can be used in the supplier selection process, which is a simple application to determine the ranking of suppliers who will be selected based on the criteria specified. The application is based on the decision-making process with The Analytical Hierarchy Process approach that has been commonly used as a tool for decision-making with many alternative choices. In general, the resulting procedure would be beneficial for the company as a guide for those involved in the procurement process at the purchasing department, primarily for decision making in supplier selection.

• Periodical: Applied Mechanics and Materials (Volume 606)
• Pages: 241-245
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.606.241
• Online since: August 2014
• Authors: Reni Amaranti*, Agus N. Supena, Agelin S. Ramadhani
• Keywords: Analytic Hierarchy Process (AHP), Business Process, Supplier Selection

References

[1] Liang-Chuan Wu, Supplier Selection Under Uncertainty : A Switching Options Perspective, Industrial Management & Data Systems, Vol. 109 No 2, (2009), pp.191-205.

DOI: 10.1108/02635570910930091

[2] John N. Pearson and Lisa M. Ellram, Supplier Selection and Evaluation on Small Versus Large Electronic Firms, Journal of Small Business Management, 33, 4, (1999).

[3] L. Kaufmann, C.R. Carter, and C. Buhrmann, Debiasing the Supplier Selection Decision: A Taxonomy and Conceptualization, International Journal of Physical Distribution & Logistics Management, Vol. 40 No. 10, (2010), pp.792-821.

DOI: 10.1108/09600031011093214

[4] Cheng-Yuan Ku, Ching-Ter Chang, and Hui-Ping Ho, Global Supplier Selection Using Fuzzy Analytic Hierarchy Process and Fuzzy Goal Programming, Qual Quant, (2010), 44, p.623–640.

DOI: 10.1007/s11135-009-9223-1

[5] D. Asamoah, J. Annan, and S. Nyarko, AHP Approach for Supplier Evaluation and Selection in a Pharmaceutical Manufacturing Firm in Ghana, International Journal of Business and Management Vol. 7, No. 10, (2012).

DOI: 10.5539/ijbm.v7n10p49

[6] T. L. Saaty and J. M. Katz, How to Make A Decision: The Analytic Hierarchy Process, European Journal of Operational Research, 48, (1990), pp.9-26.

DOI: 10.1016/0377-2217(90)90057-i