Explore the Most Potential Supplier’s Selection Determinants in Modern Supply Chain Management

Abstract EN

To increment the research reliability, validity, and representativeness, this study creatively cross-employed the factor analysis (FA) and the grey relational analysis (GRA) methods.

The results of the 144 fully completed questionnaires are analyzed by FA and then these results were utilized in second questionnaires design of 15 experts.

Furthermore, the results of these second questionnaires were further analyzed by GRA in order to explore the most potential supplier’s selection determinants in the modern supply chain management (MSCM).

Beyond a series of measurements, the measured results have induced three contributive findings: (1) the empirical interviewed industrialists reported concern that suppliers have to provide a higher material yield rate and material delivery on time rate for the qualitative increment as well as a higher supplier’s gross margin ROI for the financial stabilization in MSCM; (2) the 15 experts concluded that material insurance rate is an important attribute to estimate risky assessments and the supplier’s gross margin ROI and warehouse operations cost as a percentage of sales are critical elements in the financial evaluations of potential suppliers; and (3) Supplier’s gross margin ROI, outbound freight cost as a percentage of sales, and material insurance rate are the three most decisive determinants in MSCM.