Supplier selection criteria in Fractal supply network

Abstract

Original Equipment Manufacturers (OEMs) collaborate with their key suppliers in a new form of hands-on partnership. The Fractal supply network is distinct from the traditional supply chain because of the inherent congenital fractal characteristics. This paper uses the Analytic Hierarchy/Network Process (AH/NP) approach to provide a strict methodology and criteria ranking in the complicated decision-making process of exploring the suitability, selection and maintenance of few, albeit reliable and high quality suppliers prior to going into the Fractal Manufacturing Partnership (FMP). Selecting the right set of suppliers without undermining essential competitive factors and material costs is of strategic importance in forming this alliance and could help or hinder the inherent strength in the collaboration. The outcome from this research project is a simple, systematic, logical and mathematical guide to user of OEMs in making robust and informed supplier selection decision prior to going into FMP from a fractal supply network perspective. © IFIP International Federation for Information Processing 2013.