Supplier Evaluation and Selection in Automobile Industry

In automobile industry, to operate effectively the supply chain management, the purchasing function is very important to perform effectively. It is the responsibility of purchasing department to choose the correct suppliers to purchase the required products for their company. Thus, supplier evaluation technique is essential for purchase manager’s point of view to choose the best supplier among available suppliers. The literature addresses quality, delivery, technology, value and service as the five most common criteria used for supplier quality evaluation. In this chapter, approach of evaluation and selection of supplier has been presented as per the ISO 9000/TS16949 standards. Considering the most important criteria for evaluating the quality of suppliers based on a review of the literature and observation in practice. Finally, these organizations continuously review and implement effective quality systems following the rigorous ISO 9000/TS16949 series of standards and most automobile companies have developed in-house procedures and software for the supplier selection process.