Providing a structured methodology for supplier selection and evaluation for strategic outsourcing

Abstract

Abstract:Strategic outsourcing plays an important role in the success of supply chain management. Since some organisations outsource some important parts of their business, the consequences of poor decisions can cause big losses to their business. In this regard, many organisations have tried to identify, evaluate, and select suitable suppliers in order to establish a successful long-term cooperative relationship. Therefore, various models for the implementation of strategic outsourcing have been developed and used; these models have been often subjective and few of them are practically convenient to implement. Considering the limitations of strategic outsourcing models, in this article, a structured methodology for strategic outsourcing is provided, in which suppliers are first evaluated while considering operational criteria such as quality, cost, and delivery time by DEA model. Eventually, efficient companies in terms of strategic criteria and their strategic alliance with the organisation are evaluated and ranked using evidential reasoning (ER) algorithm. Finally, the best companies are selected as strategic suppliers for the organisation based on using the structured methodology. The presented methodology was used in a case study on a software provider company in Iran.

Developing relationship management strategies in a network context

“…Having relationships with other irms provides various beneits for irms through granting access to the valuable resources and competencies in other irms within a network (Daugherty, 2011). For example, some irms may cooperate to increase their power against rivals (Ritter et al, 2004), collaborate with competitors to reach the source of complementary resources (Momeni & Vandchali, 2017), and jointly work on innovation initiatives (Govindan, Seuring, Zhu, & Azevedo, 2016) such as new product development projects (Ebers, 2004). In addition, they may seize the opportunity of creating relationships to gain access to valuable and rare expertise to boost their competitive position by improving their performance (Maina, Marwa, Waiguchu, & Riro, 2016).…”

“…Rowley (1997) argues that the focus of dyadic relationships is on the individual stakeholder's in luences. This type of relationship views a irm as being the center of its stakeholders and analyses the in luences that various stakeholders (such as suppliers and customers) exert on the irm in a dyadic interaction (Momeni & Vandchali, 2017). For example, in the purchasing process, the typical concern is about the buyer-direct supplier relationships (Soinio, Tanskanen, & Finne, 2012), including product design, supplier evaluation, supplier selection, and order management process (Momeni & Vandchali, 2017;Van Weele, 2009).…”

“…This type of relationship views a irm as being the center of its stakeholders and analyses the in luences that various stakeholders (such as suppliers and customers) exert on the irm in a dyadic interaction (Momeni & Vandchali, 2017). For example, in the purchasing process, the typical concern is about the buyer-direct supplier relationships (Soinio, Tanskanen, & Finne, 2012), including product design, supplier evaluation, supplier selection, and order management process (Momeni & Vandchali, 2017;Van Weele, 2009). In addition, Harland (1996) identi ies that dyadic relationships related to the downstream actor, typically have focused on immediate customers' issues such as consumer behavior analysis and customer service management.…”

“…By understanding and analyzing network characteristics, irms can better implement their strategies to achieve a speci ic objective. From the network view, one of the important issues for both managers and researchers is to under-stand the network's function so that irms can better examine why SCNs create particular outcomes (Momeni & Vandchali, 2017). Managers typically integrate different business process links for different objectives.…”

The influence of selection criteria on the development of value co-creation in shipping companies

“…Scholars' interest in the strategic importance of selection criteria to companies' success is evident from the plethora of research on the topic (Momeni and Vandchali, 2017). Recognition of this importance is present in both the industrial (Haeri and Rezaei, 2019;Wang et al, 2018;Guertler and Lindemann, 2016;Donaldson, 1994;Ellram, 1990;Nair et al, 2015;Lieneland et al, 2013;Luo, 1997;Gattringer et al, 2017;) and service sectors (Liang and Mei, 2019;Tsou et al, 2019;Tsou et al, 2015;Feng, Fa and Ma, 2010;Shah and Swaminathan, 2008;Whyte, 1993).…”