Review of Supplier Selection Models: Key Success Factors and Blueprint of Supply Chain Excellence

Abstract

In turbulent economic situation, the cost of Production is the key to competitive advantage. To sustain competitive for the long term a firm need to focus on upstream Supply Chain. The Supplier selection has a critical impact on Cost of raw materials, which finally affect the Costs of goods sold. Every firm has their own set of parameters on which they select suppliers. Depending upon their strategies it could be either short/long-term contract which further depends upon suppliers overall performance and firm’s operating model. Here the researcher aims to explore various possible supplier selection models depending upon the nature of the product. This paper reveals the findings of a wide ranging literature review of supplier selection models. The areas that have received less focus are also discussed. Keywords: Supplier Selection, Competitive Advantage, Weighted Average Method, Total Cost of Ownership (TCO), Analytic Hierarchy Process (AHP), Optimization techniques.

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