Evaluation of Suppliers Efficiency in Indirect Procurement in a Tyre Manufacturing Company

Abstract

Suppliers are one of the main resources in a manufacturing company. Behaviours of the suppliers mainly affect the efficiency. This study was carried out to measure the efficiency of suppliers in indirect procurement in a tyre manufacturing company Data Envelope Analysis; graphical methods were used to evaluate the supplier efficiency by considering their relative efficiencies. A sample of 10 suppliers from the palate category are inspected to analyse the delivery status, quality of the delivery products, demand from the plant and the cost which was spent for their product. According to the result of graphical analysis suppliers B and J are the best practices in the market. With respect to the multiplier analysis and Data Envelope Analysis (DEA), suppliers B, D, E and J are most efficiency suppliers in the market. For all the methods, suppliers F and G are indicated as the poor efficiency suppliers in the market related to the tyre manufacturing company.