To successfully purchase and manage the supply chain, mining companies must evaluate the suppliers' performance. In the case of mining companies, the reliability of both equipment and services is essential to maintain the integrity of operations. Thus, this research seeks to present a structured approach to evaluating supplier performance based on the Analytical Hierarchy Process (AHP) methodology. Such a framework will help to fill the void for establishing a framework for systematically evaluating supplier performance using a specific set of criteria, such as Professionalism, Quality, Delivery Performance, Cost, and Support & Maintenance. The research uses expert opinions through pairwise comparison and AHP analysis with Super Decisions software for sensitivity analysis of supplier performance rankings based upon weights of selected criteria. The results show that AHP improves the transparency, consistency, and objectivity of supplier selection, and sensitivity analysis increases confidence levels of decision-making. The research contributes to managerial knowledge for improving purchasing efficiency, reducing risks of related supply chain activities, and developing long-term supplier partnerships for mining companies.
Keywords
Supplier performance evaluation; Analytical Hierarchy Process (AHP); Multi-criteria decision-making; Mining equipment procurement; Sensitivity analysis