Factors Affecting the choice of Optimal Suppliers in Procurement Management
Ruth Mwikali, Stanley Kavale
Abstract
This is a desk top study on factors affecting the choice of optimal suppliers. The main objective was to identify the factors affecting supplier choice; the supplier choice process has also been identified. Factors affecting choice of suppliers were identified as; cost, technical capability, quality assessment, organizational profile, service levels, supplier profile and risk factors, in that relative order. This paper concludes that a cost criterion is a key factor affecting supplier choice for it dictates among many elements, the profit margins. Technical capability, quality of materials and the profile of the supplier are also closely considered. From the findings, we recommend that supplier choice should be an open and transparent process, carried out by experts from all key departments and should be done in time to avoid stock outs.
Full Text: PDF