EFFECT OF VENDOR ATTRIBUTES ON CUSTOMER SATISFACTION AND LOYALTY

Abstract

The purpose of this research is to extract the attributes of vendor’s selection which emphasize the importance of vendor selection criteria and its relation with supply chain strategy and its impact on business performance of small and medium enterprises. Vendor selection is one of the significant activities because of its strategic importance. All these factors are essential to improve business and generate revenue. A vendor selection is a multi-objective problem which includes both qualitative and quantitative, proposed performance criteria to choose the best vendors and place the order quantities among them for the growth of the company.The advantage of APM helps in evaluation of factors for vendor selection process and application of the factor rating methodology which provides the broad image of process capability of vendors. Further, the approach provides rational decision making in the selection process requires constructive data and identification of efficient vendors. However, it helps in building a long-term relationship between company and vendors. Five general criteria cost, quality, delivery performance, reliability and flexibility attributes in order to reduce the interruption in supply chain operations. The vendor selection is one of the critical problems for every firm because it is directly related to cost and quality. Effective vendor evaluation and Procurement processes are the critical success factor for many organizations. This study is conducted to determine what critical factor should be used to evaluate vendors. Purpose: The objective of the research is to determine the attribute of the vendor's selection criteria, the role vendors in the decision making of the supply chain operation and how it can be fulfilled by using the effective strategies by the organization. This research is to focus the effect of vendors criteria on supply chain performance. Also, observe and analyze the multiple criteria of vendors that’s enhanced the chance of organization success. Findings of the Research: The current outcome of the research shows that all the selected variables have the positive impact. Cost flexibility, Delivery performance quality, and reliability are the variables which lead toward the satisfaction and loyalty of the Customer (organization). Practical implications: The current study discussed the attributes of vendor’s selection criteria which is the most influential player for the success of the organization. This study provides the factor which must be considered during the selection of the vendors that helps to enhance the efficiency of the organization.