Perpustakaan Digital ITB

Business Issue – Supplier is considered one of the most important aspects of running a business. In this era where outsourcing and collaboration are becoming more common, supplier plays a vital role to keep the business alive and running. Thus, to have an excellent supplier, the first step company needs to do is to have a proper supplier selection process. The object of this research is one of the biggest local retail company in Bandung, Indonesia with a disguised name of "Bandung Mart." Bandung Mart does not have a complex and rigid procedure in selecting suppliers. They only consider KPIs they set. When being asked about the current problem faced, the manager said several suppliers often have hard times to keep up with Bandung Mart's quality and quantity demand in the middle of the journey, while at the selection process they seem to be capable enough to meet Bandung Mart's demand. It could be understood that Bandung Mart uses qualitative, judgmental and subjective supplier selection method. Bandung Mart will need a more fair and reasonable reasoning when they conduct the supplier selection process which in this case is a method of quantification and calculation to justify and support the decision. Research Methodology – This research follows several steps of methodology which are problem identification and company selection by exploratory research, preliminary interview to identify Bandung Mart’s problem, literature review to identify the most common methods usually being used in selecting supplier, method selection by comparing the found methods and Bandung Mart’s selection criteria to find the most suitable method for Bandung Mart, data collection to gather the data necessary for data analysis, data analysis to put the proposed method into test, and finally conclusion and recommendation. Analysis and Findings – Based on the research methodology, it turns out that weighted-point is the most suitable method for Bandung Mart, given the current condition. After conducting the calculation and give the result to the manager. He seems to be satisfied enough and feels Bandung Mart could implement this method as an addition to the existing method. Conclusion and Recommendation – Supplier selection process helps the company to have a superior supplier. By owning superior supplier, it helps the company to compete with the competitor from the supply chain perspective. Although all supplier selection method has the same goal i.e. to select the best supplier, each still has its advantages and weaknesses. In this case, it is company's responsibility to pick one that is the most suitable with the condition of the enterprise. It is suggested that Bandung Mart improves the current procedure if they want to conduct a better supplier selection process, such as gathering supplier data carefully and accurately, assessing supplier’s performance continually and gradually, evaluate KPIs routinely, and involving other stakeholders in the decision-making like subordinates and superiors. As for the future research, the author could suggest supplier development and supplier evaluation be researched further as the next step after supplier selection in the entire supplier assessment process.