A vendors evaluation using AHP for an Indian steel pipe manufacturing company

TL;DR

This paper applies the Analytical Hierarchy Process to evaluate vendors for an Indian steel pipe manufacturer, emphasizing the importance of quality, delivery, cost, and relationships in supply chain performance.

Contribution

It introduces a structured AHP-based methodology for vendor evaluation tailored to the steel manufacturing industry in India.

Findings

Quality is the most critical criterion for vendor selection.

AHP simplifies the weighting of multiple evaluation criteria.

Delivery, cost, and vendor relationships are also key factors.

Abstract

To improve a firms supply chain performance it is essential to have a vendor evaluation process to be able to showcase an organizations success in the present aggressive market. Hence, the process of evaluating the vendor is a crucial task of the purchasing executives in supply chain management. The objective of this research is to propose a methodology to evaluate the vendors for a steel pipe manufacturing firm in Gujarat, India. For the purpose of the study, the Analytical Hierarchy Process was used to evaluate the best raw material vendor for this company. Multiple qualitative and quantitative criteria are involved in the vendor evaluation process. To solve the complex problem of vendor evaluation, a tradeoff between this multicriteria is important. The outcomes indicated that the AHP technique makes it simpler to assign weights for the different criteria for evaluating the vendor. Research findings showed that quality is the most important criterion followed by delivery, cost and vendor relationship management.