Improve supplier selection in the purchasing process

Abstract

Nowadays, purchasing plays an increasing role in the organization. most companies have a large potential for professionalizing the purchasing process. A systematic approach to purchasing a policy can help to make this potential visible and accessible. The supplier selection in the purchasing process is a crucial part and has great influence in the following process. The objective of the research is to improve the supplier selection in the purchasing process, reduce the risk, and enhance the efficiency in the process. The research is carried out through the interview on the two companies and compare with the benchmarking Toyota, analysis based on the qualitative and the experience from the internship of the companies to know the current state of the purchasing process in supplier selection and improve from the key issues of it. Generally, the current state of the purchasing process is also constrained by the company business which may bring a slight difference in the state of supplier selection. However, that could not affect the key factor in the process. No matter the development stage of the company’s purchasing, the standardized purchasing process is always necessary to make sure of the stable performance. And the profit of the long-term perspective in the supplier selection can bring low risk also the preliminary condition of the win-win development with the supplier.