A Network-Multi-Criteria Decision Analysis with Super Decision for Vendor Selection in the Automotive Component Industry

Abstract

The automotive component companies needed to improve their quality to meet global standards continuously. A key success factor in achieving this process is enhancing the system’s purchasing activities of vendor selection. SA Indonesia is a company that carries out business in automotive components for vendors chosen by weighting and assessing multi-criteria decision-making (MCDM). However, the company faces the lack of ability to consider interconnections between criteria that the firm values and other factors, such as price, delivery, flexibility, quality, and services. It is also important for companies to possess adequate vendor capability for sustainability and safety-health management, enabling them to determine the selection criteria. These attributes are rare in preliminary studies; therefore, companies needed utilize proper criteria to get the best vendors. Furthermore, this research integrates the AHP-ANP method to tackle the problem of selecting a vendor, using the ANP method assisted by a super decision (SD) software application. The results showed that the highest vendor selection criterion is price, while the lowest is safety. In addition, based on the analysis conducted on five vendor alternatives assessed using the ANP method, the highest vendor rank is JFESS Indonesia. Future studies can be developed by including information technology (IT) security in the selection of vendor attributes, bearing in mind the challenges ahead with the progress of developing a procurement integration system in a procurement management system, based on enterprise resource planning (ERP), in supporting digitalization in the manufacturing 4.0 era. But with an overall secure enterprise data security design.