Impact of supplier evaluation and selection on Business performance of automobile industry in Pakistan

Abstract

This research is based on supplier evaluation and selection in manufacturing firm of Pakistan and how these variables and all the factors affect performance. The factors discussed shows that how can they be implemented and what benefits they can cause if we implement them in our organizations. The industry selected is automobile industry. Quality commitment of supplier, financial stability of supplier and technical expertise of supplier are independent variables while the business performance of the buyer is the dependent variable. The whole study shows that how all these independent variables affect the indicators of dependent variables for the automobile industry in Pakistan. The study shows that all these three independent variables have highly positive relationship with performance of buyer business. There are few challenges that are discussed through the study that there is still employee resistance to change, financial issues of the organization, unawareness and expertise related to new tools and techniques are some challenges that are faced by the organization, due to which they cannot implement or partially implement all the practices to have efficient ways to enhance their productivity and outcomes. For whole study questionnaires were distributed to the organizational employees to analyse that how organizations are implementing these practices, what benefit they are getting, how they are making their performance better in operations and productivity, how they are creating value for their customers and what type of problems employees are facing, then data was gathered and results were concluded to check the relationship and impact of these practices performance. Hypothesis for this study are being put forward and then these hypotheses are examined through closed ended questionnaires. The population whole is taken as sample due to constraints. This study came up with a sample of 100 respondents. The questionnaires are being filled by the pick and drop procedure at registered offices. This gathered data is being run in SPSS software. Various tests are conducted through SPSS to analyze the data like reliability analysis, correlation, descriptive analysis and regression analysis. There are few limitations in the study are as the studies focus on manufacturing sector only due to time and budget constraints and to collect accurate data was a difficult task.