Evaluating suppliers within a self‐organized logistical network

Abstract

Purpose

This research paper proposes that the conduct of supplier relationships can be improved through a “self‐organized logistical network”.

Design/methodology/approach

An analysis has been conducted on logistical supply chain which ensures to define a self‐organized logistical network. In such a network, each supplier can evaluate its own performance by using a decision‐making method involving multiple criteria. Indeed, such method is therefore recommended to reach a satisfactory solution. For that, a typology of performance was proposed and a multiple criteria method was chosen. Indeed, among several methods available, the Analytic Hierarchy Process (AHP) method has been chosen.

Findings

The paper suggests quantifying an evaluation of each potential supplier who responds to a call for proposal from a customer, according to rules and criteria that are impartial and common to all. The process enables the emergence of the “best” supplier. The proposed approach allows a balance to be achieved between load and capacity at the supplier level, and produces a smoothing of the load curve among the various suppliers with the long‐term objective of establishing a fair system among the suppliers on the network. Our approach suggests a customer‐supplier (C‐S) relationship control where all entities C‐S partners, communicate and negotiate to respond as best as possible to the customers requirements. To each supplier, we associate a decision‐making centre through which he can self evaluate his performance in order to be able to take part to negotiations within a self organized logistical network.

Originality/value

The research focuses particularly on the study of the decision‐making centre.

Citation

Ounnar, F. and Pujo, P. (2005), "Evaluating suppliers within a self‐organized logistical network", The International Journal of Logistics Management, Vol. 16 No. 1, pp. 159-172. https://doi.org/10.1108/09574090510617402