A New Model for Continuous Evaluation of Suppliers with Real Execution Data
Abstract
Supplier evaluation is a significant work for a company in order to enhance productivity and profitably. When a well-managed supplier evaluation is developed, it has an important impact on the competitiveness of the entire supply chain. By examining the literature, it was seen that a great deal of papers are related to evaluation during new supplier selection process. However, there is the scarcity of studies to evaluate performance depending on the difficulty. The purpose of this paper is to focus on performance evaluation currently being worked with suppliers. In this context, it is investigated Enterprise Resource Planning usage in order to collect and track real-time data for supplier evaluation systems, especially examined small-to-medium-sized enterprises. With this in mind, this study conducts a questionnaire on the small-to-medium-sized enterprises. Subsequently, by referring to the results of this work, a new evaluation model with dynamic structure is developed with the utilization of the Enterprise Resource Planning in which makes constantly review of suppliers at each delivery. More, the developed model has been implemented in a medium-sized machine manufacturing company integrating into the purchasing module of its Enterprise Resource Planning system. The managers of this company have confirmed the proposed model and this manufacturing company is keeping on doing a constantly systematic evaluation with this model and thus facilitates to attain the goals of supply chain management such as reduction of inventory cost, increase profit margin and customer satisfaction.
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