A MODEL FOR QUANTIFYING STRATEGIC SUPPLIER SELECTION: EVIDENCE FROM A GENERIC PHARMACEUTICAL FIRM SUPPLY CHAIN

Given t oday’s e nvironment c haracterized by s upply c hain r isk, gr een i nitiatives, increasing customers’ value expectations, expanding regulatory compliance, and global economic crisis de mand f orward l ooking m anufacturing f irms t o select and m aintain s uite of c ompetent suppliers. Se lection of c ompetent s uppliers and how m uch s upplies s hould be pr ocured f rom a supplier or s uppliers i s an i mportant pur chasing an d s upply m anagement i ssue. Competent suppliers are the linchpin for supply chain effectiveness and the long term survival of firms. Lack of pr oper s election and e valuation of potential s uppliers c an r etard a f irm’s s upply c hain performance, catapult cost, and diminish shareholder value. T his paper undertakes a case study on solving the supplier selection process problem in a generic pharmaceutical firm leveraging the analytic hierarchy process (AHP) model and i mplemented with the support of the Expert Choice Software. The AHP is considered a reliable model for quantifying strategic supplier selection and evaluation problem in a generic pharmaceutical firm.

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