Given today’s environment characterized by supply chain risk, green initiatives, increasing customers’ value expectations, expanding regulatory compliance, and global economic crisis demand forward looking manufacturing firms to select and maintain suite of competent suppliers. Selection of competent suppliers and how much supplies should be procured from a supplier or suppliers is an important purchasing and supply management issue. Competent suppliers are the linchpin for supply chain effectiveness and the long term survival of firms. Lack of proper selection and evaluation of potential suppliers can retard a firm’s supply chain performance, catapult cost, and diminish shareholder value. This paper undertakes a case study on solving the supplier selection process problem in a generic pharmaceutical firm leveraging the analytic hierarchy process (AHP) model and implemented with the support of the Expert Choice Software. The AHP is considered a reliable model for quantifying strategic supplier selection and evaluation problem in a generic pharmaceutical firm.

Contributors: Open Source
Categories: SIG U Resource, Whitepaper
SRC Type: Evaluation and Selection, Sourcing, Strategy