A conceptual framework to evaluate suppliers for building infrastructure in the Malaysian electricity supply industry

Abstract

In the current competitive business environment the relationship between buyers and suppliers is no longer antagonistic. Emphasis has shifted to the forging of partnerships that benefits all parties in any business setting. The emergence of supply chain concepts have brought about the realization of long-term cooperation based on mutual trusts. Frequently high priority is given towards suppliers that are able to deliver, and are committed to buyer's business objectives. However, proper supplier selection is pertinent to meeting these business objectives as it dictates operational and financial positions. The current study discusses a construct that could facilitate supplier selection in a typical government linked company. It presents the key items that could be considered in a supplier selection metric using a comprehensive approach. The study is an aspect of a doctoral research programme that aims to develop a supplier selection model for an electricity supply organization. The paper concludes that having a good set of supplier selection metric is of critical importance to business success in any supply chain.