Criteria for the Selection of Suppliers: A Case of Motorcycle Industry of Pakistan

Abstract

Purpose: Supplier selection is receiving considerable attention these days; firms are investing heavily in finding those suppliers who can give them better quality products in lowest possible cost. This paper reveals the appropriate supplier selection criteria in motorcycle industry of Pakistan and this paper also reveals whether this selection differ in different regions or it is uniform in its nature. Methodology: For this we have adopted a questionnaire from Supplier Selection Instrument and make it filled from Purchase managers of 24 different companies from different locations. Non probability sampling technique was used. Specifically quota sampling was used to make sure sample is equally represented across region then factor analysis was run to see which items were appropriate in Pakistani settings. Findings: Result shows that companies prefer those suppliers who are offering better service and quality features to the manufacturing companies. And supplier selection in Lahore and Karachi is similar but supplier selections in other regions of Punjab are different. Implications: Companies should consider those suppliers, having strategic importance to their firm so they should built consensus between the company and the supplier that every decision will be made through mutual collaboration. Companies should make relationship with their suppliers and try to make transparency in business transactions.