Track: Operations Management

Abstract

Suppliers have an important role in the supply chain. The problem occurred in supplier, such as delay, quality and quantity inaccuracy in the delivery of raw materials, can cause losses to the company. It is complicated for a company to manage all suppliers individually, especially when the company has many suppliers. Supplier evaluation has become critical for company to determine the suitable action plan in managing each supplier. One effective way to manage different suppliers systematically is supplier segmentation. This study aims to integrate supplier evaluation and segmentation based on capabilities and willingness dimensions. The methods used in this study are Best-Worst Method (BWM) aimed to obtain the weight of supplier evaluation criteria, and Technique for Order of Preference by Ideal Solution (TOPSIS) method to obtain the final score of each supplier which will be the basis for segmenting suppliers. The case study is applied to cheese company in Indonesia. The results of this study are segmenting 22 suppliers of cheese's raw materials into four different segments, and recommending suitable action plans to manage each supplier segment.