MULTICRITERIA DECISION MAKING ON SUPPLIER SELECTION USING SOCCER MODEL INTEGRATED WITH ANALYTICAL HIERARCHY PROCESS

Abstract

Supplier evaluation and selection are key components in the supply chain because supplier performance directly affects the supply chain's efficiency. Therefore, companies should think strategically when they need to select their suppliers. Thus, selecting and evaluating new suppliers is essential in shaping the supply chain's smoothness and efficiency. Selecting suppliers is a complex issue as it involves many factors and decisions to be considered and needs to be assessed with an auditing process. However, a supplier audit is an expensive way to evaluate supplier capability. This research aims to propose a supplier selection model for a corrugated carton manufacturing company. The SOCCER model, developed by Steve Rogers, was used as the supplier selection criteria. Analytical Hierarchy Process (AHP) was used in the supplier selection. A face-to-face interview method was used in collecting data. The results show that the cost structure is the ultimate concern on supplier selection which bears 44.2% of the SOCCER model, followed by operational capability (23%), customer approach (13.5%), economic performance (8.3%), strategic direction (6.9%), and lastly research and development (4.1%). The percentages inform the company how much attention they need to pay when evaluating and selecting a new supplier. ABSTRAK: Penilaian dan pemilihan pembekal adalah kunci utama dalam rantaian bekalan kerana prestasi pembekal secara langsung melibatkan kecekapan rantaian bekalan. Oleh itu, syarikat perlu memikirkan secara strategik apabila ingin memilih pembekal. Dengan demikian, pemilihan dan penilaian pembekal baru adalah penting dalam pembentukan kelancaran rantaian bekalan dan kecekapan. Pemilihan pembekal adalah isu kompleks kerana ianya melibatkan banyak faktor dan keputusan perlu difikirkan dan perlu dinilai bersama proses audit. Namun, audit pembekal adalah mahal bagi menilai kemampuan pembekal. Kajian ini mencadangkan model pemilihan pembekal bagi syarikat pembekal kotak karton. Model SOCCER dicipta oleh Steve Rogers, telah digunakan sebagai kritia pemilihan pembekal. Proses Hirarki Analitikal (AHP) digunakan dalam pemilihan pembekal. Kaedah temuduga bersemuka digunakan dalam pengumpulan data. Dapatan kajian menunjukkan struktur harga adalah kehendak utama dalam pemilihan pembekal iaitu 44.2% daripada model SOCCER, diikuti kemampuan operasi (23%), pendekatan pelanggan (13.5%), prestasi ekonomi (8.3%), misi strategik (6.9 %), dan akhirnya penyelidikan dan pembangunan (4.1%). Peratusan ini berguna untuk syarikat dalam memberi keutamaan dalam penilaian dan pemilihan pembekal baru. ABSTRAK: Supplier evaluation and selection are key components in the supply chain because supplier performance directly affects the supply chain's efficiency. Therefore, companies should think strategically when they need to select their suppliers. Thus, selecting and evaluating new suppliers is essential in shaping the supply chain's smoothness and efficiency. Selecting suppliers is a complex issue as it involves many factors and decisions to be considered and needs to be assessed with an auditing process. However, a supplier audit is an expensive way to evaluate supplier capability. This research aims to propose a supplier selection model for a corrugated carton manufacturing company. The SOCCER model, developed by Steve Rogers, was used as the supplier selection criteria. Analytical Hierarchy Process (AHP) was used in the supplier selection. A face-to-face interview method was used in collecting data. The results show that the cost structure is the ultimate concern on supplier selection which bears 44.2% of the SOCCER model, followed by operational capability (23%), customer approach (13.5%), economic performance (8.3%), strategic direction (6.9 %), and finally research and development (4.1%). The percentages inform the company how much attention they need to pay when evaluating and selecting a new supplier.