||A Case Study of Supplier Selection in the High Tech Industry
||Institute of International Management (IIMBA--Master)(on the job class)
Supply chain management
Today, many companies realize that the effort to obtain products at the right cost, in the right quantity, with the right quality, at the right time from the right source is crucial for their survival. Thus, supply chain management (SCM) is one of the most important competitive strategies used by enterprises. An important role in the establishment of an effective supply chain is supplier selection. Selecting the right suppliers, those that will furnish the company with the necessary products, components, and materials in a timely fashion and effective manner, significantly reduces a company’s purchasing costs, quality problems, and long lead times, and improves its corporate competitiveness. Selecting the wrong supplier, on the other hand, could cause important operational and financial problems for the company. This thesis studies the high-tech industry in order to understand the selection process and evaluation criteria for new suppliers. The research method applied is case study, where two IDM companies are interviewed in depth. Open coding is then used to collect the data and determine the key words, after which axial coding is used to determine similar concepts.
The research results show that the supplier selection method used by these these two IDM companies are to rank the potential suppliers by grading, and the general process has five stages. Corresponding evaluation criteria are also recommended for use in the each stage of the selection process. Based on the research results, recommendations are made for IDMs that are planning to establish a supplier selection process and for suppliers that are being surveyed.
TABLE OF CONTENTS
TABLE OF CONTENTS V
LIST OF TABLES VII
LIST OF FIGURES VIII
CHAPTER ONE INTRODUCTION 1
1.1 Research Background and Motivation. 1
1.2 Research Objectives. 2
1.3 Research Procedure. 2
CHAPTER TWO LITERATURE REVIEW 4
2.1 Supply Chain Management. 4
2.2 Supplier Selection. 6
2.2.1 Evaluation Criteria for Supplier Selection. 13
2.2.2 Supplier Selection Process. 14
2.3 Knowledge Management. 17
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 21
3.1 Research Methodology. 21
3.1.1 Case Study. 21
3.1.2 Grounded Theory. 22
3.2 Data Collection. 23
3.2.1 Case Introduction. 24
3.2.2 Research Participants and Questionnaires. 25
3.3 Data Analysis. 26
3.3.1 Open Coding. 27
3.3.2 Axial Coding. 28
CHAPTER FOUR RESEARCH RESULTS 30
4.1 Supplier Selection Processes Described. 30
4.1.1 Company A. 30
4.1.2 Company B. 33
4.2 Comparison among Selection Process. 37
4.2.1 Process Similarities between Companies A and B. 37
4.2.2 Process Difference between Companies A and B. 38
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 40
5.1 Conclusion. 40
5.2 Managerial Implications. 40
5.3 Research Limitations and Further Research Suggestions. 42
LIST OF TABLES
Table 2-1 Value Chain Activities 19
Table 2-2 Summary of the Knowledge Management Value Chain Activities 20
Table 3-1 The Background of Participants in Company A 25
Table 3-2 The Background of Participants in Company B 25
Table 3-3 Open Coding Procedure 28
Table 3-4 Axial Coding Procedure 29
Table 4-1 Selection Summarized in Company A 32
Table 4-2 Selection Priority for New Supplier 33
Table 4-3 Company B Selection Summary 36
Table 4-4 Decision Priority for New Supplier 37
Table 4-5 The Selection Priority for Company A and B 38
LIST OF FIGURES
Figure 1-1. The flow chart of this study 3
Figure 2-1. Pre-criteria and firms criteria are evaluated as selection criteria 11
Figure 4-1. Selection flow of Company A 31
Figure 4-2. New supplier selection process flow of Company B 33
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