SUPPLIER EVALUATION IMPACT ON PROCUREMENT PERFORMANCE IN TEXTILE INDUSTRY OF PAKISTAN

Abstract

Selection and maintaining competent suppliers is essential and critical activity of supply chain department. There are many factors that affect supply chain’s ability to find a right supplier. Thus, this study has been done with the main objective to assess the supplier selection and evaluation practices. The purpose of this study was to examine the supplier evaluation criteria, to find the challenges of implementing Supplier Evaluation and their impact on procurement Performance. Research design is descriptive in nature. This study includes 300 respondents who were selected using simple random sampling. Questionnaire was used to collect data which was analyzed through SPSS software version 20. Findings revealed that selection based on following criteria results in best suppliers; quality of the supplier services, financial position of the supplier, flexibility of the supplier, supplier efficiency in service delivery, supplier charges, information sharing between the organization and supplier, supplier technical capability, supplier profile, experience of the supplier in offering certain services/products as well as compliance with procurement procedures. However, the supplier evaluation in the organizations is faced by several challenges including incompetent procurement officers, inefficiencies in procurement processes, cost of implementing procurement systems as well as maintaining procurement system greatly affects supplier selection process. The study therefore recommended that the management and the supply chain management needs to effectively evaluate the most effective evaluation criteria that would facilitate its procurement performance. Procurement of any supply chain needs to ensure that the department has competent workforce that can manage supply chain processes efficiently in the organization.