Prioritization of Supplier Development Practices: A Fuzzy Method

Abstract

Today, manufacturing firms are demanding a higher level of performance from their suppliers. Manufacturing firms need to ensure that their suppliers are able to provide the best quality of materials, on time, at the right place and the right level of service. To achieve this objective, manufacturing firms may engage in supplier development (SD) program. However, the number of practices involved in SD is extensive. The management of a manufacturing firm should understand the roles and relationship between these practices, so that it may provide additional information on how to manage them. Thus, this paper proposed a model for evaluating and selecting supplier development practices using an integration of fuzzy logic and Analytical Hierarchy Process (AHP). Experts' decision making is used in the process of developing the model. The result suggested that practices associated with transferring knowledge have the highest priority. The results obtained can be referred by manufacturing practitioners as guidelines of seeking the opportunity to implement SD program in enhancing the capabilities of suppliers who contribute to the movement of a supply chain in achieving the greater performance of manufacturing sustainability and responsiveness.