Supplier Selection in Shipbuilding Industry – A Review

Abstract

There are many criteria and methods that can be used to select the right supplier. Selection of a suitable supplier is needed, especially in the shipbuilding industry. Selection of suppliers is to reduce risky purchases, maximize price suppression with the best quality goods for buyers and establish long-term relationships between suppliers and buyers to facilitate future cooperation with today’s increasingly competitive industry. This study was made to critically analyze the factors and appropriate methods in selecting suppliers in the shipbuilding industry. With many methods and criteria that are of particular concern to today’s industrial developments, in this paper the literature has been thoroughly reviewed to help provide solutions to these problems. The results of the reviews that have been carried out can be seen that the right criteria for selecting suppliers include quality, price, delivery, service, technical ability, financial strength, geographical location, reputation, reciprocal arrangements, etc. Likewise, the methods used, namely ANP-PROMETHEE and LARG, can be taken into consideration for a good supplier selection method.