Economic Analysis: Theory and Practice
 

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Improving the preliminary assessment of material resource suppliers at machine-building enterprises

Vol. 14, Iss. 16, APRIL 2015

PDF  Article PDF Version

Available online: 30 April 2015

Subject Heading: PROCUREMENT MANAGEMENT

JEL Classification: 

Pages: 47-60

Kozlova E.V. Ivanovo State University of Chemistry and Technology, Ivanovo, Russian Federation
KozlovaE.V@yandex.ru

Volynskii V.Yu. Ivanovo State University of Chemistry and Technology, Ivanovo, Russian Federation
vvolyn@mail.ru

Subject The subject of the research is to perfect the assessment of material resource suppliers of machine building enterprises and to develop the techniques and algorithm of preliminary assessment of suppliers.
     Objectives The work's objective is to improve the selection process of material resource suppliers at their preliminary evaluation stage. We performed testing on the case of OAO KRANEKS. To achieve the objective, we studied scientific papers on the supplier selection problem, specific features of each stage of the algorithm of preliminary assessment of suppliers. We also improved the approach to determining the procurement category and supplier type and tested the proposed techniques and the algorithm.
     Methods Scientific works on systems analysis, management accounting and econometrics constitute the methodological basis of the research. Based on the theory of systems analysis and the method of process approach to SADT (Structured Analysis and Design Technique) management, we developed the process of supplier selection of a machine-building enterprise in general, and the process of preliminary assessment of suppliers in particular. We developed the supplier selection process with the help of All Fusion Process Modeler software.
     Results The results of the study include the developed techniques and algorithm of preliminary assessment of suppliers, which allow improving the approach to determining the procurement category and supplier type.
     Conclusions and Relevance The proposed techniques and algorithm of preliminary assessment of suppliers focus on the support to decision-making in choosing the best supplier of a machine-building enterprise, where stock list may include several thousand items of material resources. The aim is to increase the efficiency of administrative decisions in the process of supplier selection at a machine-building enterprise, and to improve procurement function. The proposed approach to the classification of purchases and suppliers increases transparency of the classification. This enables to develop a more accurate and correct procurement strategy, and to identify the most important categories of procurement.

Keywords: preliminary assessment, supplier, category, procurement, purchase, strategy, real supplier, potential supplier, complexity, priority

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