A Model for Strategic Supplier Selection

Joseph Sarkis and Srinivas Talluri

Proceedings of the Third Worldwide Research Symposium on Purchasing and Supply Chain Management, London, Ontario, Canada, Forthcoming May, 2000.

One of the most important decisions by organizational purchasing managers and departments is the selection of strategic partners that will supply them with the necessary products, components and materials that will allow them to maintain a competitive advantage over competitors. Commodity partnerships that are based only on price are no longer acceptable for suppliers of critical materials or for organizations that wish to practice the latest innovations in supply chain management. Strategic relationships are the most preferred method for the long-term well being of a supply chain. These strategic relationships will require a significantly different focus in developing them. This selection focus has to be long-term and incorporate the decisions and opinions of a diverse set of managers and functions. To aid in this strategic selection process we introduce a dynamic strategic decision model that allows the inputs of a variety of managerial decision making levels (strategic to operational) as well as considering the changing competitive environment.

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