Analyzing the performance of supplier development: a case study

Abstract

Purpose

The first objective of this paper is to identify the critical success factors (CSFs) and their corresponding key performance indicators (KPIs) for supplier development (SD) in a manufacturing environment. The second objective is to develop a methodology to analyze and evaluate the performance for SD using CSFs and their KPIs over the time.

Design/methodology/approach

In all, 13 CSFs and their corresponding KPIs for SD are established through an extensive literature review, discussion held with managers/engineers in different Indian manufacturing companies and conducting brainstorming sessions. A methodology is proposed using analytic hierarchy process (AHP) and performance value analysis to assess and evaluate the performance of SD over the time.

Findings

From an extensive analysis of the results, under the given circumstances, the growth of SD performance is positive at different progressive points along the time horizon.

Research limitations/implications

This study has not been statistically validated in manufacturing supply chain for complete acceptability.

Practical implications

This study provides insights into the performance evaluation of SD using CSFs and their corresponding KPIs. The managers should capture their manufacturing environment which can reflect their own priority considerations to establish the impact of each KPI on its corresponding CSF.

Originality/value

Although many issues related to SD have been widely researched individually, few studies have been reported with a model to quantify, monitor, analyze, and evaluate the growth of SD performance in manufacturing environment in Indian context. The proposed model has the ability to capture the performance along KPIs and CSFs to draw fruitful conclusions regarding the success of the SD programme.

Citation

Routroy, S. and Pradhan, S.K. (2014), "Analyzing the performance of supplier development: a case study", International Journal of Productivity and Performance Management, Vol. 63 No. 2, pp. 209-233. https://doi.org/10.1108/IJPPM-09-2012-0106