An analysis of some mistakes, miracles and myths in supplier selection

Abstract

This paper analyzes some consequences of formal methods and procedures for supplier selection. It argues that many mistakes and miracles may occur in frequently used procedures. Practical examples are given. In the analysis it turns out that preventing these unwanted effects from occurring may be tackled by methodological improvements. Some examples and guidelines for these are given as well. But another important point lies in the perspectives of the actors in supplier selection: governments and industry policy makers, purchasers, suppliers and (management) researchers. The analysis shows that these different actors often operate from quite different and sometimes conflicting attitudes, assumptions and principles. On the one hand this analysis leads to the conclusion that using some sort of formal approach for supplier selection may be necessary. On the other hand it clarifies the criticism on such an approach and the difficulties associated with its use. The paper concludes with recommendations and implications for policy makers, researchers, and practitioners.