A multiple criteria supplier segmentation using outranking and value function methods

[EN] Suppliers play a key role in supply chain management which involves evaluation for supplier selection problem, as well as other complex issues that companies should take into account. The purpose of this research is to develop and test an integrated system, which allows qualifying providers and also supplier segmentation by monitoring their performance based on a multiple criteria tool for systematic decision making. This proposal consists in a general procedure to assess suppliers based mainly on exploiting all reliable databases of the company. Firstly, for each group of products, their evaluation criteria are defined collaboratively in order to determine their critical and strategic performance, which are then integrated with other criteria that are specific of the suppliers and represent relevant aspects for the company, also classified by critical and strategic dimensions. Two multiple criteria methods, compensatory and non-compensatory, are used and compared so as to point out their strengths, weaknesses and flexibility for the supplier evaluation in different contexts, which are usually relevant in the supply chain management. A value function approach is the appropriate method to qualify providers to be included in the panel of approved suppliers of the company as this process depends only on own features of the supplier. On the other hand, outranking methods such as PROMETHEE have shown greater potential and robustness to develop portfolios with suppliers that should be partners of the company, as well as to identify other types of relationships, such as long term contracts, market policies or to highlight those to be removed from their portfolio. These results and conclusions are based on an empirical research in a multinational company for food, pharmaceuticals and chemicals. This system has shown a great impact as it represents the first supplier segmentation proposal applied to industry, in which decision making not only takes into account opinions and judgements, but also integrates historical data and expert knowledge. This approach provides a robust support system to inform operative, tactical and strategic decisions, which is very relevant when applying an advanced management in practice.This research has been partially developed with the support of the Ministry of Economy and Competitiveness (Ref. ECO2011-27369) and Ministry of Education (Marina Segura, scholarship of Training Plan of University Teaching).Segura, M.; Maroto, C. (2017). A multiple criteria supplier segmentation using outranking and value function methods. Expert Systems with Applications. 69:87-100. doi:10.1016/eswa.2016.10.031S871006

Design of a Framework for Strategic Supplier Evaluation Decision

Abstract. The supplier evaluation process is a decision problem that has many criteria and goals that contain many qualitative and quantitative factors. So various multi criteria decision making (MCDM) techniques are widely used for supplier evaluation process. The process of evaluating and improving the performance of suppliers is very important to measure the effectiveness of management. The measurement and evaluation of the current system performance is indispensable to the organization for sustainable organizational growth. This research will make a framework of decision making to evaluate strategic suppliers. Output from evaluation of strategic supplier performance assessment considering sustainability criteria. Most research in evaluating only considers the assessment of supplier performance alone. The contribution of this research is to make a model of strategic supplier decision evaluation that considers not only the assessment on the supplier's performance but also how the assessment of the items supplied. The results of this study will be used to help automotive companies evaluate strategic supplier performance Keywords: strategic supplier, evaluation, decision making, sustainability

Usulan Framework Supplier Relationship Management dengan Metode ROC-MOORA dan K-Means Clustering (Studi Kasus UMKM Knalpot JMR Purbalingga)

UMKM JMR Exhaust merupakan Usaha Mikro Kecil dan Menengah yang bergerak diindustri pembuatan knalpot di Kabupaten Purbalingga. UMKM JMR Exhaust melakukan hubungan kerja sama dengan 6 supplier dalam penyediaan bahan plat stainless steel Plat SS201. Akan tetapi dalam kerja sama tersebut, terdapat beberapa kendala yang diakibatkan oleh komunikasi yang kurang baik. UMKM JMR Exhaust belum memiliki metode khusus dalam memilih supplier serta supplier yang ada masih sering membatalkan pesanan sepihak akibat jarak yang terlalu jauh. Perlu adanya management hubungan kerja sama yang baik antar kedua belah pihak. Oleh karena itu penelitian ini dilakukan dengan tujuan untuk mengimplementasikan beberapa aktivitas Supplier Relationship Management yang sesuai dan mengintegrasikannya menjadi sebuah framework. Aktivitas SRM berupa evaluasi supplier, pengelompokan supplier, dan pengembangan supplier. Data yang digunakan berupa hasil penilaian setiap supplier berdasarkan 12 kriteria menggunakan skala 1-5. Data tersebut kemudian diolah dengan metode ROC dalam pembobotan 12 kriteria yang digunakan dan MOORA dalam pengolahan nilai akhir dan perankingan. Hasil evaluasi menunjukan kriteria terpenting adalah harga dengan bobot sebesar 0,259, dengan hasil penilaian (Nilai Yi) tertinggi adalah A3 Mulya Tegal sebesar 0,4474. Untuk pengelompokannya dihasilkan 2 kelompok dengan pembagian kelompok pertama berisikan PT Jindal Stainless Indonesia, Pelangi Jaya Steel Surabaya, dan PT Cemerlang Surabaya. Sedangkan kelompok kedua terdiri dari PT. Cilegon Steel Indonesia, A3 Mulya Tegal, dan PT Abadi Metal Utama Surabaya. Selanjutnya kedua kelompok tersebut diberikan saran pengembangan sesuai dengan karakteristik kelompoknya dan terakhir melakukan perancangan framework aktivitas SRM secara keseluruhan

Supply Chain Management and Management Science: A Successful Marriage

The last century has witnessed extant studies on the applications of Management Science (MS) to a diverse set of Supply Chain Management (SCM) issues. This paper provides an overview of the contribution of MS within SCM. A framework is developed in this paper with a sampling of MS contributions to major SCM dimensions. Future research directions are presented

Improving Food Supply Chain Management by a Sustainable Approach to Supplier Evaluation

[EN] Increasing food supply chain sustainability means having to deal with many conflicting aspects and involves producers, several departments in distribution companies, and consumers. The objectives of this research are to develop models to solve real-world supplier evaluation problems and validate them with real data on fresh fruits in a supermarket chain. Literature review and results from a survey with managers from purchasing, logistics, and quality departments of a food distribution company are used to establish criteria, to first model the assessment of products and, second, to model supplier evaluation. A multicriteria hybrid approach is proposed, using multi-attribute utility theory (MAUT) to assess the quality of products and Preference Ranking Organisation Method for Enrichment Evaluation (PROMETHEE) to complete their evaluation with strategic criteria to be included in the second phase. The results allow companies to rank suppliers by product and classify them according to the main criteria categories, such as product strategy, food safety, economic, logistic, commercial, green image and corporate social responsibility. A sorting approach is also applied to obtain ordered groups of suppliers. Finally, the models proposed can form the core of a decision support system in order to create and monitor the supplier base in food distribution companies, as well as to inform sustainable decision making.This research was funded by the Regional Ministry of Education, Research, Culture and Sport of the Autonomous Government of the Valencian Region, Spain, grant number AICO/2017/066.Segura Maroto, M.; Maroto Álvarez, MC.; Segura García Del Río, B.; Casas-Rosal, JC. (2020). Improving Food Supply Chain Management by a Sustainable Approach to Supplier Evaluation. Mathematics. 8(11):1-23. https://doi.org/10.3390/math8111952S123811Ho, W., Xu, X., & Dey, P. K. (2010). 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Decision-making techniques in supplier selection: Recent accomplishments and what lies ahead. Expert Systems with Applications, 140, 112903. doi:10.1016/j.eswa.2019.112903Wetzstein, A., Hartmann, E., Benton jr., W. C., & Hohenstein, N.-O. (2016). A systematic assessment of supplier selection literature – State-of-the-art and future scope. International Journal of Production Economics, 182, 304-323. doi:10.1016/j.ijpe.2016.06.022Ansari, Z. N., & Kant, R. (2017). A state-of-art literature review reflecting 15 years of focus on sustainable supply chain management. Journal of Cleaner Production, 142, 2524-2543. doi:10.1016/j.jclepro.2016.11.023Schramm, V. B., Cabral, L. P. B., & Schramm, F. (2020). Approaches for supporting sustainable supplier selection - A literature review. Journal of Cleaner Production, 273, 123089. doi:10.1016/j.jclepro.2020.123089Govindan, K., Rajendran, S., Sarkis, J., & Murugesan, P. (2015). Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. Journal of Cleaner Production, 98, 66-83. doi:10.1016/j.jclepro.2013.06.046Rajeev, A., Pati, R. K., Padhi, S. S., & Govindan, K. (2017). Evolution of sustainability in supply chain management: A literature review. Journal of Cleaner Production, 162, 299-314. doi:10.1016/j.jclepro.2017.05.026Demir, L., Akpınar, M. E., Araz, C., & Ilgın, M. A. (2018). A green supplier evaluation system based on a new multi-criteria sorting method: VIKORSORT. Expert Systems with Applications, 114, 479-487. doi:10.1016/j.eswa.2018.07.071Diaz-Balteiro, L., González-Pachón, J., & Romero, C. (2017). Measuring systems sustainability with multi-criteria methods: A critical review. European Journal of Operational Research, 258(2), 607-616. doi:10.1016/j.ejor.2016.08.075Thies, C., Kieckhäfer, K., Spengler, T. S., & Sodhi, M. S. (2019). Operations research for sustainability assessment of products: A review. European Journal of Operational Research, 274(1), 1-21. doi:10.1016/j.ejor.2018.04.039Konys. (2019). Green Supplier Selection Criteria: From a Literature Review to a Comprehensive Knowledge Base. Sustainability, 11(15), 4208. doi:10.3390/su11154208Segura, M., Maroto, C., & Segura, B. (2019). Quantifying the Sustainability of Products and Suppliers in Food Distribution Companies. Sustainability, 11(21), 5875. doi:10.3390/su11215875Memari, A., Dargi, A., Akbari Jokar, M. R., Ahmad, R., & Abdul Rahim, A. R. (2019). Sustainable supplier selection: A multi-criteria intuitionistic fuzzy TOPSIS method. Journal of Manufacturing Systems, 50, 9-24. doi:10.1016/j.jmsy.2018.11.002Dweiri, F., Kumar, S., Khan, S. A., & Jain, V. (2016). Designing an integrated AHP based decision support system for supplier selection in automotive industry. 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Structured methodology for supplier selection and evaluation in a supply chain. Information Sciences, 181(9), 1651-1670. doi:10.1016/j.ins.2010.07.026Zeydan, M., Çolpan, C., & Çobanoğlu, C. (2011). A combined methodology for supplier selection and performance evaluation. Expert Systems with Applications, 38(3), 2741-2751. doi:10.1016/j.eswa.2010.08.064Şen, C. G., Baraçlı, H., Şen, S., & Başlıgil, H. (2009). An integrated decision support system dealing with qualitative and quantitative objectives for enterprise software selection. Expert Systems with Applications, 36(3), 5272-5283. doi:10.1016/j.eswa.2008.06.070Bottani, E., & Rizzi, A. (2008). An adapted multi-criteria approach to suppliers and products selection—An application oriented to lead-time reduction. International Journal of Production Economics, 111(2), 763-781. doi:10.1016/j.ijpe.2007.03.012Segura, M., & Maroto, C. (2017). A multiple criteria supplier segmentation using outranking and value function methods. 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P., Vincke, P., & Mareschal, B. (1986). How to select and how to rank projects: The Promethee method. European Journal of Operational Research, 24(2), 228-238. doi:10.1016/0377-2217(86)90044-5Nemery, P., & Lamboray, C. (2007). ℱlow $\mathcal{S}$ ort: a flow-based sorting method with limiting or central profiles. TOP, 16(1), 90-113. doi:10.1007/s11750-007-0036-xLau, H., Nakandala, D., & Shum, P. K. (2018). A business process decision model for fresh-food supplier evaluation. Business Process Management Journal, 24(3), 716-744. doi:10.1108/bpmj-01-2016-0015D-Sight CDM http://www.d-sight.com/solutions/d-sight-cdmNemery, P., Lidouh, K., & Mareschal, B. (2011). On the usefulness of taking the weights into account in the GAIA visualisations. International Journal of Information and Decision Sciences, 3(3), 228. doi:10.1504/ijids.2011.041585Nemery, P., Ishizaka, A., Camargo, M., & Morel, L. (2012). 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Proposta de um método para apoio da avaliação de performance de fornecedores em uma empresa de varejo

A gestão de fornecedores é um processo importante para as empresas do setor varejista pois influencia diretamente suas vantagens competitivas, impactando na qualidade do produto final e custos do negócio. O objetivo deste estudo foi propor um método para avaliar a performance de fornecedores de uma empresa de varejo. Para isso foram explorados aspectos relacionados à gestão da cadeia de suprimentos, o processo de seleção de fornecedores e a avaliação da performance de fornecedores. Através da revisão bibliográfica foi possível analisar os métodos e critérios de avaliação mais utilizados. O trabalho foi dividido em seis etapas. As primeiras contemplaram a análise do contexto e processo de avaliação de fornecedores da empresa. Em seguida foi definido o método, os critérios e seus pesos, assim como as métricas de avaliação. Por fim, foi feita a avaliação dos fornecedores e validação da solução. O método utilizado foi o MAUT (Teoria da Utilidade Multiatributo). Dentre os principais resultados do estudo estão: (i) a identificação das vantagens e desvantagens do método MAUT; (ii) A obtenção de critérios, pesos e métricas atreladas à avaliação de fornecedores; (iii) A avaliação da performance dos fornecedores de um departamento particular da empresa; (iv) A análise de critérios de fornecedores específicos, identificando pontos de melhoria e seus desdobramentos em estratégias para a empresa em estudo

Multiple Criteria Decision Support System for Customer Segmentation using a Sorting Outranking Method

[EN] For companies, customer segmentation plays a key role in improving supply chain management by implementing appropriate marketing strategies. The objectives of this research are to design and validate a multicriteria model to support decision making for customer segmentation in a business to business context. First, the model based on the transactional customer behaviour is extended by a hierarchy with three main criteria: Recency, Frequency and Monetary (RFM), customer collaboration and growth rates. Customer collaboration includes quota compliance, variety of products and customer commitment to sustainability (reverse logistics and shared information). Second, the Global Local Net Flow Sorting (GLNF sorting) algorithm is implemented and validated using real company data to classify 8,157 customers of a multinational healthcare company. Third, the SILS quality indicator has been implemented and validated to assess the quality of preference-ordered customer groups and its parameters have been adapted for contexts with thousands of alternatives. The results are also compared with an alternative model based on data mining (K-means). The multicriteria system proposed allows to segment thousands of customers in ordered categories by preferences according to company strategies. The segments generated are more homogeneous, robust and understandable by managers than those from alternative methods. These advantages represent a relevant contribution to automating supply chain management while providing detailed analysis tools for decision making.Barrera, F.; Segura Maroto, M.; Maroto Álvarez, MC. (2024). Multiple Criteria Decision Support System for Customer Segmentation using a Sorting Outranking Method. Expert Systems with Applications. 238:1-17. https://doi.org/10.1016/j.eswa.2023.12231011723

Sustainable Technology Supplier Selection in the Banking Sector

Sustainable supplier selection is a key strategic problem in supply chain management. The aim of this research is to provide a new hybrid multicriteria model for evaluating technology suppliers and validate it with a case study in the banking sector. This approach allows companies to perform qualification, selection, ranking and sorting of suppliers on a sustainable basis. Integration of several techniques is necessary to address this complex decision problem with conflicting economic, environmental and social criteria. Analytic hierarchy process (AHP) is useful for problem structuring and weighting criteria collaboratively. Multi-attribute utility theory (MAUT) is applied to obtain indicators for product quality and supplier risks, whose utility functions are derived by data-driven models that favour evaluation objectivity and transparency. Preference ranking organisation method for enrichment evaluation (PROMETHEE) is suitable for supplier selection due to its discriminant power among alternatives. Finally, FlowSort is proposed to classify suppliers into ordered groups and the outcomes are compared with results from MAUT. Results show its applicability by increasing process transparency and reducing operational risks in practice

Current Application Fields of ELECTRE and PROMETHEE: A Literature Review

Multi-criteria decision making techniques are widely used today. In this study, it was examined the current usage areas of ELECTRE and PROMETHEE, which are in the class of outranking-based multiple criteria decision techniques, in Turkey and the world. In this regard, the studies carried out in 2016 and the first four months of 2017 were scanned with the help of Google Scholar. Thus, it is aimed to put forward the latest state of development of ELECTRE and PROMETHEE, and to give an idea about their future application forms and fields. As a result, it was seen that application problems of ELECTRE and PROMETHEE in various fields was tried to remove, and designed appropriate methods for special cases in studies. Furthermore, evaluation according to scenario variations, solving complex decision problems with metaheuristics, common usage of hesitant fuzzy implementations, proliferation of group decision preference, increasing the number of applications of hybrid techniques, used softwares, sensitivity analyses, two linguistic approaches taking an important place in fuzzification have been identified as remarkable results