COMPARISON OF VENDOR PERFORMANCE EVALUATION AND SELECTION BETWEEN CURRENT SYSTEMS WITH ANALYTICAL NETWORK PROCESS RESULT IN PT. XZ

Abstract

Supply Chain Management is important thing in industry. Vendor is the key component in the supply chain flow. PT. XZ is one of the biggest manufacturing companies that produce heavy equipment. The main materials are plates and spare part that have been supplied by eight vendors. The current system of vendor evaluation and selection is based on tardiness of delivery time, but every vendor has different frequency of delivery so that it cannot be compared since it is not relevant. Therefore, the appropriate criteria and sub criteria is required to create a new system of vendor evaluation and selection. The criteria and sub criteria are determined based on the previous research and interview an expert in the company. There are 5 criteria and 17 sub criteria that are approriate for vendor evaluation and selection. ANP is the development of AHP by considering dependency between elements of hierarchy. By using ANP, the interdependency between criteria, sub criteria and their weight can be defined. Data collection is done by using observation, interview and questionnaire. Sub criteria long term relationship has the highest weight and vendor GH is the best vendor with score 3.057 of 5.