Evaluating Criteria for Selection of Suppliers in Build-To-Order Supply Chain

Abstract

Most multinational organizations are following worldwide sourcing through global supply chains to secure market share and increase profits. Many companies are in the process of developing a build-to-order supply chain (BTO SC) to compete in such an environment. Most of the methods choose among various existing criteria for supplier selection problem (SSP) from the contemporary literature. Very few studies have validated the supplier selection criteria used for evaluation. Supplier selection has a remarkable effect on the integration of the supply chain relationship. Effective and accurate supplier selection decisions are important mechanisms for logistics management in many firms as a means of enhancing logistic performance. This study pioneers the use of the decision-making trial and evaluation laboratory (DEMATEL) method to find significant criteria in selecting suppliers in the BTO environment. Our research results determine that technical capability is the most influential criterion and has the strongest connection to other criteria.