Avalable onlne at www.scencedrect.com ScenceDrect Proceda Engneerng 34 (206 ) 377 385 9th Internatonal Scentfc Conference Transbaltca 205 Suppler Evaluaton Methodology n the Logstcs Company Lena Černá*, Bbána Buová Unversty of Žlna, Unverztná st., 0026 Žlna, Slovaa Abstract Created methodology provdes procedures, gudelnes and prncples for evaluaton of suppler qualty. The goal of the methodology s to ncrease the effcency of supply chan management, allowng them to better respond to the new stuaton and at the same tme meet the needs of selected logstcs company and all partcpatng subjects. Evaluaton of supplers under the proposed methodology s mplemented on the bass of mult-crtera analyss, selecton crtera wll be performed on the bass of personal and wrtten questonng of practtoners and lterature. The determnaton of weghts to each crteron s made on the bass Saaty method. In the mult-crtera analyss, suppler evaluaton s used Scorng model. 206 The Authors. Publshed by by Elsever Elsever Ltd. Ltd. Ths s an open access artcle under the CC BY-NC-ND lcense (http://creatvecommons.org/lcenses/by-nc-nd/4.0/). Peer-revew under responsblty of the organzng commttee of Transbaltca 205. Peer-revew under responsblty of the organzng commttee of Transbaltca 205 Keywords: crtera; scales; contractor; mult-crtera analyss; Saaty matrx; comparson; Crteron matrx; logstcs company and qualty.. Introducton The choce of suppler has long term mpact on the company ablty to respond effectvely to customer needs. The wder possblty of the choce of consumers from foregn marets or the ntenton of foregn dstrbuton, the more dffcult the choce of supplers s. The sgnfcance of the accurate suppler choce s based on the fact that the delays of the planned delvery from the suppler cause customer or fnal user needs dssatsfacton. The partner of choce (suppler) should be the one who fulflls the best the crtera n combnaton of qualty and prce. The human factor: man the decson-mang authorty, also plays mportant role n the suppler choce process. Ths authorty should be aware of all the optons whch lead to objectve achevement, and of the consequences. The * Correspondng author E-mal address: Lena.Cerna@fpedas.unza.s 877-7058 206 The Authors. Publshed by Elsever Ltd. Ths s an open access artcle under the CC BY-NC-ND lcense (http://creatvecommons.org/lcenses/by-nc-nd/4.0/). Peer-revew under responsblty of the organzng commttee of Transbaltca 205 do:0.06/j.proeng.206.0.023
378 Lena Černá and Bbána Buová / Proceda Engneerng 34 ( 206 ) 377 385 authorty should have the ablty to objectvely assess all the optons of the suppler choce and choose the opton wth the greatest beneft for the company. The essental role n the supply chan management s that the actvty contradcton elmnaton s ntegrated nto the whole process, and respectvely, nto the process of ganng compettveness. New complex process s establshed and t ncludes the terms suppler manufacturer customer,.e. the defnton of the supply chan. All the companes, whch partcpate n development, producton and delvery of the product to fnal user, belong to ths chan. In general we may spea about controlled cooperaton exceedng the company so the supplers are on one sde and the customers (by enterng and leavng value-creatng chan) on the other sde and they are coordnated by busness creaton processes. Ths approach s called as supply chan management (SCM). It s not advsable to focus only on the nternal structure and company processes durng the nternal process restructurng, but wth growth n the number of networs, t s approprate to engage also supplers, partners and not least the customers, t means actve supply chan management as a whole. The proposed suppler evaluaton methodology defnes basc approaches, nstructons and prncples for the area of suppler qualty evaluaton. The objectve of the methodology s to ncrease of maxmum supply chan management effcency whch enables better reacton to newly created stuatons and t wll satsfy the needs of the logstcs company. The man objectve of every logstcs company, whch provdes servces, s to acheve optmal level of the provded customer servces wth the optmal costs. Those two mportant factors counteract to a large extent each other. On the one hand there s contnung growth of customer demands on delvery speed, qualty and flexblty, and on the other sde, there s problem of prce compettveness. To sum up, there s constant potental search tenson on decrease of the logstc costs. Wth creaton of the Supply Chan Management concept, the experts ncreasngly realze that the choce and suppler evaluaton, customer satsfacton analyss and competton analyss are the tools whch may be used to ncrease compettveness of the whole supply chan. Suppler evaluaton s the assessment process of legslatve and contract terms fulfllment and complance by the suppler based on gven objectve evaluaton crtera and the method of ther nterpretaton. Suppler evaluaton s very sgnfcant acton whch leads to company success and t helps to avod the rss n relablty, speed and flexblty. The suppler decdes about logstcs company success on the maret n two areas: qualty of provded servces and costs. 2. Proposed methodology for the area of suppler evaluaton n the logstcs company Presented methodology determnes the approaches, nstructons and prncples for the area of suppler qualty evaluaton. The objectve of the methodology s to ncrease supply chan management effcency whch wll enable better reacton to newly created stuatons and t wll satsfy the needs of the selected logstcs company and all the subject concerned. Suppler evaluaton accordng to the proposed methodology s based on mltcrteron analyss, the crteron choce depends on personal and wrtten practtoners questonng. Importance defnton of the partcular crtera s based on Saaty method. The Scorng model s used at multcrteron suppler evaluaton analyss. The multcrteron analyss was specfed on supplers n two areas whch cause the most of the complants n the logstcs companes: Transport area (external transport shftng towards the customer); Handlng and storage area (general handlng, classfcaton and storage). The multcrteron analyss wth Scorng model was used n supplers evaluaton n the logstcs company. Saaty method was used to defne mportance of the partcular crtera. 2.. Practtoners characterstcs The practtoners n the area of the logstcs were contacted for the needs of suppler evaluaton methodology creaton. The specfc characterstc of practtoners:
Lena Černá and Bbána Buová / Proceda Engneerng 34 ( 206 ) 377 385 379 Practtoner (Area Manager for Central Slovaa) Job descrpton: to ensure management and development of busness actvtes n the logstcs company, coordnaton and control actvtes, complex settng of all logstc company processes. Practtoner 2 (Logstcs specalst) Job descrpton: to ensure plannng and organzaton of the logstcs, preparaton of the nternal drectves for employees, the responsblty for fulfllment of the terms agreed on wth busness partner, the qualty mprovement of the servces provded by company, the responsblty for effectve technology and staff utlzaton, the communcaton wth busness partner, n the case of problem stuaton the coordnaton of transport among the company departments, reportng. Practtoner 3 (Outsourcng partner) Job descrpton: team management at pacage handlng. Practtoner 4 (Lead courer) Job descrpton: management of carrers team. 2.2. The crteron choce for suppler evaluaton There are dfferent crtera for supplers evaluaton n the actual maret envronment and used by companes. The method of questonng (non-standardzed questonng) specfcally form of n-depth ntervew wth practtoners was used to defne and choose the crtera for supplers evaluaton. It ensure the correctness of the crteron choce. It s the method of psychologcal qualty research to acqure wde spectrum of detaled nformaton about respondent s atttudes and opnons. Complaton of crtera for suppler evaluaton was based on personal ntervews wth the practtoners. Selected crtera for suppler evaluaton () are ndcated as: K -th crteron for suppler evaluaton, where =, 2,..., ; total number of crtera for suppler evaluaton. Prce (K ) prce certanty, agreement how much the buyer should pay and n what perods. The prce represents servce purchase prce for a unt of delvered amount. Qualty (K 2 ) provded qualty of the realzable servces. The supplers may guarantee the qualty of ther provde servces n dfferent ways: qualty certfcate, the number of complants to total amount of provded servces. Relablty (K 3 ) deadlne (delvery tme) complance. Delvery tme (K 4 ) t represents the perod from recevng the orders by suppler to executon of the partcular servce. Flexblty (K 5 ) f there s a demand for change of amount of the provded servces, ths crtera represents suppler wllngness to adapt to changes and percentual expresson of the capablty to fulfll receved orders n tme. Responsblty (K 6 ) t ncludes the suppler responsblty for the actons durng the provson of ordered servces/products, responsblty realzaton for poor provson of servces to company, responsblty for ordered amount, qualty, tme. Identfcaton/rss preventon (K 7 ) wllngness to dentfy accrued rss and ther preventon. Suppler development (K 8 ) suppler wllngness to nnovate and modernze, cooperaton development wth suppler, compatblty of nformatonal company system among the subjects. 2.3. Defnton of the crteron mportance The Saaty method of multcrteron analyss s used to defne the mportance of the partcular crtera. Saaty matrx for crteron mportance defnton of the partcular crtera s provded n the Table (Suppler evaluaton). Scorng model s an nstrument for quanttatve evaluaton of the partcular supplers accordng to gven crtera for the purpose of effectve and mpartal decson mang. The dentcal mportance was set by all the prcttoners wth the method of equal mportance wthn the proposed methodology. The practtoners are equally relable n the area of logstcs. Crteron mportance calculaton the mportance of the partcular crtera s calculated wth the ad of Saaty matrx assocated wth -th practtoner, t means that every matrx s amended by -th practtoner. The calculaton of the crteron mportance by -th practtoner s presented n matrx (Table 3).
380 Lena Černá and Bbána Buová / Proceda Engneerng 34 ( 206 ) 377 385 Table. Saaty matrx crteron mportance defnton for suppler evaluaton. Vendor evaluaton Prce Qualty Relablty Flexblty Responsblty Rs Development of suppler Prce Qualty Relablty Flexblty Responsblty Rs Development of suppler Table 2. R-matrces composton of Saaty matrx for a specfc expert (suppler evaluaton). Vendor evaluaton K K 2... K K 2... Table 3. Crteron mportance calculaton by -th practtoner. Vendor evaluaton K K K 2... S = S j j = R S R v = R = K 2... = 0 R Table 4. Crteron mportance calculaton by -th practtoner. Expert K K 2 K 3 K 4 K 5 K 6 K 7 Evaluaton of suppler Prce Qualty Relablty Flxblty Responsblty The preventon of rss Development of suppler S = S = j R = s K Prce 5 9 9 405,0000000 2,3577 0,2394 K 2 Qualty 2 7 7 7 8 548,0000000 3,424 0,3475 K 3 Relablty /2 5 3 3 22,5000000,5602 0,584 K 4 Flxblty /5 /7 /5 /7 5 0,004086 0,4557 0,0463 K 5 Responsblty /9 /7 7 7 5 3,8888889,24 0,233 K 6 The preventon of rss /7 /3 /7 4 0,027209 0,5976 0,0607 K 7 Development of suppler /9 /8 /3 /5 /5 /4 0,0000463 0,2403 0,0244 R = 9,8470 R v = R = s
Lena Černá and Bbána Buová / Proceda Engneerng 34 ( 206 ) 377 385 38 2.4. Crtera matrx complaton made by -th practtoner from specfc area of expertse To ensure mportance transparency from the practtoners, the table was drafted crtera mportance matrx assgned by the practtoners. Importance assgnment of the selected crtera for supplers evaluaton mpartal mportance assgnment. Table 5. Crtera mportance matrx assgned by the practtoner. K K 2 K 3 K 4 K 5 K 6 K 7 Vendor evaluaton Specalst Specalst 2 Specalst 3 Specalst 4 Prce 0,2394 0,0373 0,570 0,98 Qualty 0,3475 0,778 0,570 0,2353 Relablty 0,584 0,2603 0,570 0,092 Flexblty 0,0463 0,0808 0,365 0,0562 Responsblty 0,233 0,5 0,288 0,0624 The preventon of rss 0,0607 0,368 0,2252 0,659 Development of suppler 0,0244 0,560 0,0384 0,729 Table 6. Scorng grd for mportance assgnment of the ndvdual crtera. Scorng table crteron () s equvalent to (j) 2 The Intermedate Stage 3 crteron () s wealy preferred (j) 4 The Intermedate Stage 5 crteron () s strongly preferred (j) 6 The Intermedate Stage 7 crteron () s very strongly preferred (j) 8 The Intermedate Stage 9 crteron () s an absolute (very strongly) preferred (j) The calculaton of the fnal crtera mportance assgned by the practtoners calculated by formula: wk r j = = v w j j, () where: wk fnal mportance of -th crteron for the evaluaton; wk = = v w r j j j fnal mportance of the frst crteron ( K ) for the evaluaton; =, 2,..., ; v j = mportance of the j-th practtoner; j =, 2,..., ; w j = mportance of the -th crteron assgned by j-th practtoner. Table 7. Assgnment of the crteron matrx for suppler evaluaton. Vendor evaluaton K K 2... D D 2... D p D p
382 Lena Černá and Bbána Buová / Proceda Engneerng 34 ( 206 ) 377 385 Enlstng of the fnal mportance the fnal mportance of the ndvdual crtera for suppler evaluaton may be enlsted as: ( 2 wk = wk, wk,..., w ). (2) 2.5. Suppler evaluaton accordng to Scorng Model Supplers assessment accordng to predefned crtera. It s mportant to assess numercal scale for Scorng model. It s clear that the more ponts the suppler gans, the better poston he gets. Every logstcs company may defne ther own numercal scale accordng to ther needs. The proposed numercal scale was consulted wth the practtoners by the method of questonng (personal ntervew). Table 8. Composton wth the possble lmts for scorng of the ndvdual crtera. Level ndcator/crtera excellent very good good satsfactory poor The number of ponts 5 4 3 2 Prce Qualty Relablty Flexblty Responsblty Rs Development of suppler 2.6. Proposal of the possble lmts for scorng of the ndvdual crtera Indvdual lmts of scorng were desgned wth the ad of branstormng method and personal ntervews wth practtoners. Table 9 s focused on the area of transport and Table 0 s focused on the area of handlng and storage. Area of transport (external transport shppng towards the customer). Table 9. Lmts proposal for scorng of the ndvdual crtera n the area of transport. Level ndcator excellent very good good satsfactory poor The number of ponts 5 4 3 2 Prce more than 5 % below the average maret prce 5 0 % below the average maret prce to 0 % below the average maret prce average maret prce more than the average maret prce Qualty N NZ 99 % N NZ=99 98 % N NZ = 98 97 % N NZ = 97 96 % N NZ = 96 95 % Relablty S 99 % S = 99 98 % S = 98 97 % S = 97 96 % S = 96 95 % Flexblty mmedate operatonal flexblty adequate adequate lmted not Responsblty maxmum adequate adequate lmted not The preventon of rss Development of suppler maxmum cauton approprately cautous approprately cautous closely care regularty adequate adequate lmted not careless Crteron K 2 (Qualty) n the area of transport may be defned as:
Lena Černá and Bbána Buová / Proceda Engneerng 34 ( 206 ) 377 385 383 NZ N NZ = 00 (%), (3) N C where: N NZ percentage of the amount of the delvered consgnments for certan tme perod (%); N Z number of delvered consgnments for certan tme perod; N C total number of consgnments for certan tme perod. Crteron K 3 (relablty) may be defned wth the ndcator of relablty of delvered consgnments n tme: dor. Nv S = 00 (%), (4) dor. N C where: S relablty of the delvery n tme (%); N v dor. number of delvered consgnments n tme for certan tme perod; N c dor. total number of delvery for certan tme perod. Table 0. Lmt proposal for scorng of the ndvdual crtera n the area of handlng and storage. Level ndcator excellent very good good satsfactory poor The number of ponts 5 4 3 2 Prce more than 5% below the average maret 5 0 % below the average maret prce to 0 % below the average maret prce average maret prce more than the average maret prce prce Qualty N NZ 99 % N NZ = 99 98 % N NZ = 98-97 % N NZ = 97 96 % N NZ 96 95 % Relablty S 99 % S = 99 98 % S = 98 97 % S = 97 96 % S = 96 95 % Flexblty mmedate adequate adequate lmted not operatonal flexblty Responsblty maxmum adequate adequate lmted not The preventon of rss Development of suppler maxmum cauton approprately cautous approprately cautous closely care regularty adequate adequate lmted not careless Area of the handlng and storage (ordnary handlng, classfcaton, and storage). Crteron K 2 (Qualty) n the area of handlng and storage may be defned as: N Z N PZ = 00 (%), (5) N C where: N PZ percentage of the number of the undemaged consgnments per month (%); N z number of undemaged consgnments per month; N c total number of consgnments per month. Crteron K 3 (Relablty) may be defned wth the ndcator of relablty (classfcaton and handlng of the consgnments s done n agreed perod) n tme: man Nv S = 00 (%), (6) man N C where: S relablty of consgnments handlng done n tme (%); N v dor. number of handled consgnements n tme for certan tme perod; N c dor. total number of consgnements n tme for certan tme perod. Table assgnment (Table ) suppler evaluaton proposal, where total number of ganed score may be calculated as follows:
384 Lena Černá and Bbána Buová / Proceda Engneerng 34 ( 206 ) 377 385 = wk b 00. (7) The maxmum of total score number of evaluaton, whch s possble to acheve wth selected scale, s 500. Table. Suppler evaluaton. Vendor evaluaton K K 2... - wk b wk. b.00 celom wk b 00 = 3. Suppler classfcaton proposal The suppler classfcaton proposal s based on the total number of ponts whch the suppler may acheve durng the evaluaton. Table 2. Suppler classfcaton. The total number of ponts The type of suppler 500 450 Excellent suppler 450 400 A very good suppler 400 350 A good suppler 350 300 Matchng suppler less than 300 Unsatsfactory suppler In the case that the suppler s classfed as excellent suppler, hs poston n the logstcs company s not compromsed. The suppler proved excellent results n every area and the cooperaton and communcaton between the suppler and company s at the hgh level. As long as the suppler s classfed as nsuffcent suppler, t s necessary that the logstcs company wll as a suppler wrtten submsson where the suppler wll react to the nsuffcent evaluaton and what are hs remedal actons and schedule of ther realzaton. The second opton s that the company wll loo for alternatve (new) suppler. 4. Conclusons. The fundamental objectve of every logstcs company provdng servces s to acheve optmal level of provded servces wth mnmal costs. Those two crucal factors affect each other n many cases. On the one sde, there are constantly ncreasng demands of the customers on the speed, qualty and flexblty of the consgnments. On the other sde, there s a problem of prce compettveness, so ths means a tenson on the constant search of potentals on decrease of the logstc costs. 2. The applcaton of the nnovatve approaches nto the measurng and qualty evaluaton for the companes provdng servce s very mportant step. It leads to ncreasng company success on the transport maret. Nowadays, the most of the measurement and qualty evaluaton systems s just partal n some of the logstcs companes, because t s reduced on evaluaton of the selected factors whlst many shortcomngs n supply chan management stay hdden. The ssue of the approprate qualty management selecton s beng
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