SELECTION OF SUPPLIERS IN THE SUPPLY CHAIN

Abstract

In recent decades, procurement has been defined as an integrated strategic business activity that aims to create high added value based on the focus company’s relationship in the supply chain with its suppliers. The selection of suppliers in the supply chain is a complex task that should be performed in a cost-effective manner, taking into account the numerous requirements of business practice. The optimal supplier choice affects not only the product quality but also the formation of its price. The right choice of suppliers leads to timely, continuous and quality production. The decision on the choice of a supplier is a multi-criteria problem. A large number of models and techniques are used to make such a decision. The paper develops a framework to support decision-making and criteria-based prioritization of suppliers. The aim of this paper is to present the elements and specifics of the application of the Analytic Hierarchy Process as one of the multi-criteria decision-making techniques and SpiceLogic Ration Will software package as well as their relevance for supplier selection. In addition, based on the analyzed literature, the paper indicates the criteria used when choosing a supplier. The obtained results show that supplier 1 is the most important among the analyzed suppliers. The application of the SpiceLogic software package is justified, as the proposed package provides a platform for manufacturers to better understand the capabilities that sustainable suppliers must have in order to continue working with them and successfully manage the supply chain.