Analyzing supplier selection criteria with lean philosophy adoption: study in the Turkish automotive industry
Aydin, Munise Selin
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With the increase in competition between companies in the global markets, companies try to find new ways to improve themselves and offer better value to their customers. One of the most important activities that are continuously developing in markets is supplying. Global companies look for better suppliers in order for efficient and qualified production. Therefore, they have various standards for selection of suppliers and these standards are evolving with new improvements. Lean manufacturing originates from automotive production in order to increase the efficiency of production. Overtime it has evolved to a business philosophy and today it can be seen in many other areas beside production. One of the areas that lean is frequently seen is supply chain management. Many experts claim that in order to be lean all the activities inside a supply chain must be lean. Namely, lean companies must adopt lean supply techniques and choose their suppliers with considering lean principles. The objective of this work is to understand the change in the requirements of customers in B2B markets with the adoption of lean philosophy. Lean mainly improves relationships, logistics and production areas; and provides efficiency in the long term with suppliers. While this study analyzes criteria change for supplier selection over years, it also shows the effect of lean diffusion on criteria selection. Turkish automotive industry is selected in order to study criteria for supplier selection and evaluation. Thus, interviews were arranged with the managers of procurement teams in various automotive companies in Turkey. The results show that quality, delivery and relationship performance are the most important criteria for automotive manufacturers. Moreover, they require the basics of lean principles from their suppliers; even though the suppliers in the market are not considered as completely lean.