Does supplier evaluation impact process improvement?

TL;DR

This study investigates how supplier evaluation factors, especially delivery and relationship management, influence process improvement in a steel pipe manufacturing firm in India, highlighting the importance of supplier relationships.

Contribution

It identifies key supplier evaluation factors and demonstrates their impact on process improvement, emphasizing the significance of delivery and relationship management over quality and cost.

Findings

Delivery and supplier relationship management significantly influence supplier evaluation.

Supplier evaluation has a notable impact on process improvement.

Quality and cost factors are less significant in this context.

Abstract

The research explores and examines factors for supplier evaluation and its impact on process improvement particularly aiming on a steel pipe manufacturing firm in Gujarat, India. Data was collected using in-depth interview. The questionnaire primarily involves the perception of evaluation of supplier. Factors influencing supplier evaluation and its influence on process improvement is also examined in this study. The model testing and validation were done using partial least square method. Outcomes signified that the factors that influence the evaluation of the supplier are quality, cost, delivery and supplier relationship management. The study depicted that quality and cost factors for supplier evaluation are insignificant. The delivery and supplier relationship management have the significant influence on the evaluation of the supplier. The research also depicted that supplier evaluation has a significant influence on process improvement. Many researchers have considered quality, cost and delivery as the factors for evaluating the suppliers. But for a company, it is quintessential to have a good relationship with the supplier. Hence, the factor, supplier relationship management is considered for the study. Also, the case study company focused more on quality and cost factors for the supplier evaluation of the firm. However, delivery and supplier relationship management are also equally important for a firm in evaluating the supplier.