Preliminary Supplier Risk Evaluation
Document Type
Oral Presentation
Start Date
16-5-2013
Abstract
Supplier selection is of utmost importance when sourcing goods locally and globally. This is especially true for smaller companies with limited resources and less financial flexibility. Selecting a reliable supplier can be difficult for those without internal knowledge of a potential supplier’s organization. This research paper focuses on a simple and effective approach for outsiders to calculate and quantify the risks associated with new suppliers, without needing to gather complicated internal information or enlist the services of a consulting firm. The primary purpose of our research was to provide users with a baseline in which to assist in decision making when selecting suppliers, taking into account financial, country, and operational risks. Research was conducted using numerous academic databases, periodicals, textbooks, and internet resources. An equation has been constructed with various data inputs to arrive at a simple quantitative measurement of supplier quality/reliability; the equation’s benefits are its time efficiency and zero cost to the user. The equation was tested on several large companies who are top-performers in their industry, with results confirming our hypothesis. Supplier risks are weighed before selection is made.
Recommended Citation
Loyles, Jason and Lopez, Edward, "Preliminary Supplier Risk Evaluation" (2013). Symposium Of University Research and Creative Expression (SOURCE). 7.
https://digitalcommons.cwu.edu/source/2013/cwucenters/7
Additional Mentoring Department
Operations and Supply Chain Management
Preliminary Supplier Risk Evaluation
Supplier selection is of utmost importance when sourcing goods locally and globally. This is especially true for smaller companies with limited resources and less financial flexibility. Selecting a reliable supplier can be difficult for those without internal knowledge of a potential supplier’s organization. This research paper focuses on a simple and effective approach for outsiders to calculate and quantify the risks associated with new suppliers, without needing to gather complicated internal information or enlist the services of a consulting firm. The primary purpose of our research was to provide users with a baseline in which to assist in decision making when selecting suppliers, taking into account financial, country, and operational risks. Research was conducted using numerous academic databases, periodicals, textbooks, and internet resources. An equation has been constructed with various data inputs to arrive at a simple quantitative measurement of supplier quality/reliability; the equation’s benefits are its time efficiency and zero cost to the user. The equation was tested on several large companies who are top-performers in their industry, with results confirming our hypothesis. Supplier risks are weighed before selection is made.
Faculty Mentor(s)
Kun Liao