Supplier selection for improving supply chain performance

Abstract

Supplier selection played a role in developing industry performance. It was one of the critical issues in supply chain management. KUD Dau Batu was one industry that needed managing operations and raw material purchase. The raw material needed, fresh milk, was a perishable product with a short lifetime. This study illustrated applying a decision-making procedure for supplier selection on KUD Dau Batu by ANP and fuzzy TOPSIS. Four suppliers (Princi, Gading Kulon, Petung Sewu, and Kucur) thought qualified for procuring milk. The first step determined the weight of criteria and sub-criteria that impacted strategic supplier selection by ANP. The result showed that supplier selection is influenced by several factors: raw material cost, shipping cost, guarantee, responsiveness, lead time, delivery time, financial health, and ability to identify needs. This approach in a KUD Dau Batu showed that cost was the top priority. The next step was to defuzzification of criteria and rank the four suppliers by fuzzy TOPSIS. The supplier from Kucur was the best milk supplier compared to another supplier. The proper supplier selection could contribute to decreasing cost production and improving industrial performance.