Determinants of supplier selection and evaluation, their impact on business key performance indicator of buying companies: in the context of telecom companies in Pakistan

Nadir Hussain Shah, Saqib Mahmood, Muhammad Rashid* and Samina Naz

*Corresponding Author’s E-mail: raashid_m@hotmail.com

Accepted 20 December 2012

Abstract

Our paper will discuss determinants of supplier selection and evaluation, their impact on business key performance indicators with a focus on telecom companies.  Our research is causal by nature. Interviews were conducted from the heads, managers and specialists of the supply chain department. Data was gathered through questionnaire distributed among the practitioners. Different statistical tools were used to check the reliability of the questionnaire and find out the important determinants of suppliers selection and evaluation. Our findings confirm that there are some potential factors of strategic buyer supplier alliance which has a positive impact on overall business performance of the buyer firm in telecom sector. Due to constraints of time only telecom sector is selected for our research study. Moreover only five variables were taken in to consideration. Further studies must be conducted in various cities and sectors of the business. This paper unfolded the vital factors of the supplier selection, and highlighted the importance of buyer supplier strategic alliance. Ultimately both buyer and supplier take lead in their area of business, and establish reputation. The results shows that buyer supplier alliance has an impact on overall business performance and understanding each other will yield good results for both buyer and supplier.

Keywords : Supply chain management, Telecom sector, and Business Performance.