GRADUATION PROJECT

(MCDM tool for evaluation and selection of

Supplier for NOOS programs in the Denim
Buying Department.)

A dissertation submitted in partial Fulfillment of

the requirement for the award of Degree in

Bachelors of Fashion Technology

Submitted By

SUSHANT

Under the Guidance of

Mr. Vimal Singh

Department of Fashion Technology

National Institute of Fashion Technology, (Gandhinagar)
 ACKNOWLEDGEMENT

I, Sushant, having successfully completed the 16 weeks’ Graduation

Project Internship at Landmark Group, would like to express my
sincere gratitude towards the organization for extending such an
exciting opportunity of working under the Denim Buying department
for Max Fashion.
It’s been a great experience working under the mentorship of Mr.
Vijay Azad (Senior Manager, Buying) whose constant guidance,
monitoring and encouragement despite his busy schedules, has had a
huge impact on my overall experience at the company.
I also express my gratitude to Mr. Vimal Singh (Faculty Mentor,
DFT, NIFT Gandhinagar) and the Department of Fashion
Technology, National Institute of Fashion Technology, Gandhinagar
for giving me an opportunity and exposing me to the industries so that
I can enrich my practical knowledge for better understanding of the
course.

Sushant
NIFT Gandhinagar
BFT/18/575
Contents
INDUSTRY OVERVIEW...............................................................................................................3
COMPANY PROFILE....................................................................................................................4
BUSINESS SUBSIDIARIES.........................................................................................................5
MISSION, VISION & VALUE.....................................................................................................6
LEADERSHIP STRUCTURE.......................................................................................................7
PRODUCT AND SERVICE OFFERED.......................................................................................8
AWARDS & RECOGNITION....................................................................................................10
VENDOR ORDER PROCESS.........................................................................................................12
TECH PACK CREATION..............................................................................................................12
TECH PACK SHARING & ORDER EXECUTION.......................................................................14
NEW VENDOR IDENTIFICATION AND REGISTER PROCESS...............................................15
VENDOR EVALUATION PROCESS: -....................................................................................15
VENDOR REGISTRATION PROCESS.....................................................................................15
ORDER CONFIMATION...............................................................................................................16
PRE PRODUCTION ACTIVITIES.................................................................................................17
SAMPLE APPROVAL PROCESS.................................................................................................19
REGIONAL DISTRIBUTION CENTER............................................................................................20
PROJECT..........................................................................................................................................21
ABSTRACT...................................................................................................................................21
INTRODUCTION.........................................................................................................................22
REVIEW OF LITERATURE.......................................................................................................23
DISADVANTAGE CONVENTIONAL SUPPLIER SELECTION............................................23
DECISION ANALYSIS MODEL FOR SUPPLIER SELECTION.............................................25
AN ANALYTICAL HERARCHY PROCESS MODEL FOR SUPPLIER SELECTION...........26
METHODOLOGY........................................................................................................................29
NOOS DENIM PRODUCT.........................................................................................................31
IMPLEMENTATION STEPS OF PROPOSED SUPPLIER SELECTION PROCESS...............32
Step 1: CALLING FOR PUBLIC TENDER...............................................................................32
Step 2: DETERMINATION OF KEY CRITERIA AND SUB CRITERIA IN SUPPLIER
SELECTION PROCESS.............................................................................................................32
Step 3: BY USING AHP METHOD COMPUTE WEIGHTED VALUE OF EACH SUPPLIERS
.....................................................................................................................................................35

Step 4: MEASURE SUPPLIER PERFORMANCE..................................................................................35

 Step 5: IDENTIFY SUPPLIER PRIROTY & SELECTION.......................................................36
CONCLUSIONS................................................................................................................................36
REFERENCE....................................................................................................................................37

LIST OF FIGURE AND TABLE

Figure 1: Landmark Group....................................................................................................................4
Figure 2: Max Showroom......................................................................................................................5
Figure 3: Business Subsidiaries.............................................................................................................6
Figure 4: Conventional supplier selection process...............................................................................25
Figure 5: Proposed supplier selection model.......................................................................................26
Figure 6:Sample Hierarchical Tree......................................................................................................27

Table 1: Scores for the importance of variable (Saaty's Scale)............................................................28

Table 2: The value of Random Consistency Index..............................................................................29
Table 3: Summarize Data of Crieteria.................................................................................................35
Table 4: Pair-wise comparison matrix.................................................................................................36
Table 5: Comparative supplier selection criteria weights for different suppliers................................36
Table 6: Final score of each supplier s' results and ranking.................................................................37
INDUSTRY OVERVIEW

LANDMARK GROUP

Figure 1: Landmark Group

Landmark Group is an Indian multinational conglomerate based in Dubai, UAE headed by

Micky Jagtiani, who is the Founder and Chairman of the company. The group is involved in
retailing of apparel, footwear, consumer electronics, cosmetics & beauty products, home
improvement and baby products. The group also has interests in hospitality & leisure,
healthcare and mall management.

Currently operating in more than 21 countries, whereas,

UAE (Global Headquarters Dubai), India, Saudi Arabia, Kuwait, Bahrain, Oman, Qatar,
Egypt, Jordan, Lebanon, Pakistan, Libya, Turkey, Yemen, Tanzania, Nigeria, Kenya,
Zambia, Sri Lanka, Thailand & Malaysia.
 COMPANY PROFILE

MAX is the value fashion brand owned by the DUBAI based landmark
group. It was launched in the year 2004 in UAE. It has 400 stores across the
world in 16 countries, with a 5500 employee’s whole globe. Max launched
first store in India in 2006, in Indore. It is the fastest growing fashion retail
business across globe, Max India has a reach that extends to over 60 cities. 
Boosting loyal customer base of 5 million customers.

Figure 2: Max Showroom

Max is offering wide varieties of products for men’s, women’s, kids and
also footwear and accessories store.

Max is offering products with a high quality at cheap prices. Customers can
expect a world-class shopping environment stocking the latest in
international fashion from around the globe. It is selling products in its own
Max’s label of in-house designs in carefully chosen color palettes. Shoppers
enjoy great prices on an excellent range of over 3,000 styles every season,
in brand new designs, silhouettes and fabrics.
BUSINESS SUBSIDIARIES
Baby shop, Splash, Max, Lifestyle, Iconic and Centre point (a single store format
Apparel housing Baby shop, Splash, Shoe mart and Lifestyle) and International Fashion
Franchises (Lipsy, Koton, New Look, Reiss & Yours London), Easy buy (Fashion)

Footwear Shoe mart, Shoexpress, Shoe mart International Footwear

Furniture & Home

Home Centre & Home Box
Improvement

City max, Oasis Malls, Food mark, Spaces, Fitness First, Fun City, Fun Works and
Hospitality
associated trademarks

Healthcare iCare Clinics, Balance Wellness Club

Others retail E-max (Consumer Electronics), Sports One (Fitness Gear), Candelite (Confectionery)

Figure 3: Business Subsidiaries

MISSION, VISION & VALUE

Vision
To be among the top three retail players in three of the fastest growing retail
markets in the world (Middle East, India and china)
Mission
 CAREFULLY LISTEN
 CONSTANTLY ADAPT
 ALWAYS DELIVER
OUR VALUES
 PASSION FOR EXCELLENCE
 INTEGRACY IN EVERYTHING WE DO.
 EMPOWERING THE PEOPLE TO STRIVE AND DELIVER
 ADAPTING CHANGE MARKET AND CUSTOMER NEEDS.

MAX fashion has its own label, has own design, has an individual identity in
Indian fashion retail market, with an aim of bringing fashion to every houses in
cheaper price & cost effective manner. And also giving a very tough
competition for other brands like Pantaloons, reliance trends, big bazaar
fashion, Westside.
 LEADERSHIP STRUCTURE

MAX HIERACHY
CHAIRMAN

VICE CHAIRMAN

EXECUTIVE DIRECTOR-MAX RETAIL

PRESIDENT-HR
BUYING
Vice President Sr.vice President
Sr. vice president
(Men’s wear) (PD, sourcing, technical, Quality)
(Finance)
Vice President Asst. vice president

(Women’s wear) (Sourcing)

Sr. vice President Vice president

Sr. vice president
(Kid’s wear) (Quality assurance)
(Group project)
Sr. vice president Deputy General Manager

(SCM & retail planning) (Technical)

Sr. vice president
General manger
(Retail operations)
(Product development)

AVP Store opening Asst vice president Asst vice president

(New store opening) (Marketing) (Business development)

 General Manager

Corporate HR

PRODUCT AND SERVICE OFFERED

VARIOUS DEPARTMENTS OF MAX

 Men’s wear department

 Ethnic wear department
 Western wear department
 Kids wear department
 Footwear department
 Accessories department

Based on the style and pricing range, products have been divided into two categories. Such
as,

 Basics

Daily wear designs come under this category, pricing range start from 299to
499. Basics usually constructed with basic style, using basic printing patterns,
common trims, which can be afforded by middle class people also.

 Non-basic

Usually garment which is constructed with special design, texture, extra

special trims, special embroidery, blends, and styles comes under this
category. Party wear comes under this category. Basically price range starts
from 499-1299.

COMPETITION

The major competitors for MAX is

 Reliance trends
 Pantaloons
 Globus
 Westside

COMPETITION

1 2
1

3 4
1 1
AWARDS & RECOGNITION

2014
 Max won One Gold and one Silver at the 3rd Asian Customer Engagement
Forum Integrated Marketing Awards, 2014. The Gold was in the 'Integrated
Marketing Campaign' category and the Silver for the 'Brand Building' category.
[10]
 Max won the 'People's Choice Retailer of the Year' at the Retail Brilliance
Awards, 2014, by the BOC.[11]

2015
 Max won the “Brand Excellence in the Retail Sector” and the “Marketing
Campaign of the Year” at the 6th CMO Asia Awards, 2015.[15]

2016
 At Retail Excellence Awards by CMO Asia Max won across multiple categories.
 Max won “Fashion Retailer of the year “award at the Star Retailer Awards 2016
held in Delhi on October 2016.

2017
 Max was awarded “Retailer of the year –Fashion & Lifestyle” at the CMO Asia
Presents Retail Excellence Awards that was held in Singapore.
 Max (India) won the “Images most admired retailer of the year –Fashion &
Lifestyle” at the Images Retail Awards September, 2017. This is the 4th year in a
row Max has won this award.
 Max (India) won the “Best Loyalty program” at the Images Retail Awards
September, 2017.
 Max (India) won the “Fashion Retailer of the year” at the Franchisee India Star
Retailer awards 2017 held in Delhi on November 2017.
VENDOR ORDER PROCESS

TECH PACK CREATION

The designer team is thus broadly divided into 4 sub- departments within which they have
different categories as mentioned below,

 Men’s wear – formal, casuals

 Kids wear –basic, fast fashion
 Ethnic wear
 Western women’s wear

Each designer categorizes their designs as per category namely:

Safe styles

Safe styles + fashionable styles

Fashionable styles.

Fashsionable styles

Safe + fashionable styles

Safe styles

SAFE STYLES

Safe styles are the styles which are already done by the brand in the previous few seasons,
but still want to continue the same styles as it has gained remarkable profit and equally liked
by the customer. Thus the best sellers of the previous season come under this category. the
buyers are confident that the same styles will definitely do well for them in the next few
seasons. Minor changes such as colors combinations, change of graphic design are made.

SAFE + FASHIONABLE STYLES

This category includes the styles that have already done by the brand in the previous season
and changes are made as per the forecasting for the next season. Changes are made as per
the current trend regarding trims, prints and fabric.

FASHIONABLE STYLES
Fashionable styles are the designs that have to be thought and planned well as they are new
and have no relation to the previous styles. The fashionable styles include the designs that
are derived from completely new theme and mood. It is very experimental and success
cannot be assured, it may or may not perform well. It’s a risk for the brand as it not
presented to the customers earlier. It depends on the upcoming trends and the brand image.

Designer does research on latest fashion trends

and design merchandize on par with international
standards.

Total no of options finalized based on the

previous season good & bad performance Option
nos. are received before season launch from
planners.

Designer will develop the design sheet

based on the buying strategy.

Trend presentation to create the

awareness about international market
and where the market is heading
towards.

Line sheet discussion between designer/buyer

together finalizes the requirements. Considering
discussion, designer will do modification &
changes in style, trims, color, fit, design, silhouette
etc...

Range handover before season launch to buyers

along with collection boards, Techpack and
reference samples.
 TECH PACK SHARING & ORDER
EXECUTION New vendor sourcing by
approaching various vendors in the
If there is any vendor gap for a
Designers prepare design sheet based on the buying market through the information
particular product.
strategy & hands collection boards to the buyer for available in the internet &
updating the required size range for the season. references etc.…

Vendor rating publishing based on the previous season

performance considering Sampling, quality, delivery from QA
team. Buyer/sourcing team analyze based
Discussion between
sourcing/ buying on product quality, capacity,
team & vendor. capability, location.

Shortlisting vendor based on the sourcing strategy.

Vendors N Vendor application

agrees
MAX O is rejected
terms and
Product wise allocation to the
vendor
YE
S
Sourcing /buying team collects
documents from vendor & Request
Design sheet & color standard Design sheet sharing sent to QA team for Vendor
sharing to the vendor. to the vendor. evaluation.

QAM Physically visit the

vendors facility, conduct
Cost quotation sharing by Cost sharing, negotiation audit and verify the
Buyer assist CAD & finalization. various items
the vendor by getting the
team for preparing
fabric quality & trim
details. MINI marker to get
exact fabric cost.
N
O
VRF process
QAM will Prepare the
report and submit it to Vendors
YE Final
completion by vendor QA Head, Buyers & meets all S Approval by
Negotiations if any, & sharing hard & soft Sourcing the MAX QA HOD

MAX finance team cross

Agreement sharing to verify after the receipt of
Cost finalization.
vendor. all hard copies & upload
in portal.

Completion of all PLM login id & password

Delivery date internal process & created & shared to
discussion. approvals, vendor vendor, so that vendor can
code is generated & see the assigned tech pack,
shared. sampling comments from
MAX.
 NEW VENDOR IDENTIFICATION AND REGISTER
PROCESS
Vendor identification is the big task which is performed by the buyer with the help of
sourcing team.

Vendor identification is the process of identifying who is specialized in manufacturing

the particular product. Either buyer or sourcer can identify the vendor by enquiry or by
suggestions from other external sources (or) may vendor himself can approach MAX
Buyer for business.

 Import or Domestic vendor.

 Whether vendor is Raw material supplier or a manufacturer (or) he is Garment
manufacturer.
 For some specialized fabric blend types.
 Depends up on the quantity either Bulk or small.
 Import duties benefits & taxation benefits.
 Time duration.
 Costing and profit margin strategy, capability, capacity of the vendor.

VENDOR EVALUATION PROCESS: -

 Once the buyer or a sourcing identifies a valid vendor, buyer sends the mail
requesting for conducting audit.
 The RQA will visits the factory and inspects the infrastructure, documentations
like factory license, trade license, PCB approvals certifications, and also
certification given by the third party audit institution like SEDEX, WRAP, SGS, and
OCATEX etc.…
 And also the capacity, man power, machines power (no of machines, how many
are working, how many are using). RQA will inspect the fire extinguishers, fire
evacuation plan, fire alarm, floor marking, area specifications, first aid kits, safety
measures, safe assembly area, sexual harassments, meeting areas.
 And also check pay roles, wage, overtime wage, designations, and personal details
with designations. Production capacity, capability, annual turnover, monthly
production.
VENDOR REGISTRATION PROCESS.
Once the new vendor evaluation is done report is generated. If a vendor meets
requirements as per company norms, vendor registration process will go ahead.
 ORDER
CONFIMATION
Respective tech designer creates POM for respective styles by following
original sample/ block spec/ designer & buyer comments and provide
initial pre-spec to vendor for making development/ fit sample.

Final tech pack is updated with POM & construction

comments in the PLM.

Lab dips, strike off, desk loom & yarn dyed must be submitted by vendor /supplier before
making initial yardages for quality & color approval by following design sheet.

Vendor sourced mills Buyer sourced mills

Designer give their comments & approval based on the product

requirements & initial yardages to be made accordingly.

Vendor must follow & get the Initial yardages arrival from supplier for sample making & vendor submits
sample trims from the nominated betting sample following the tech pack specifications.
supplier for betting sample
making.

final comments on Lab dips & strike

Garment Range presentation & Style wise qty finalization in accordance
off, desk looms provided for bulk
with store potential.
order placing.

Based on the betting feedback planner will provide total option plan ,
tentative quantity to the buyer.

Buyer finalize the total quantity by mapping with the

budget allocated by max for the season.

Considering betting
feedback, if there is any
inflation or deflation in
costing to be finalized &
must accept by both buyer
& vendor before order
sheet releasing. Buyer shares the master file to the
Betting feedback is shared to the planner to get the final size wise qty
vendor. breakups required for respective RDC.

Buyer release excel order confirmation sheet to the

Planners provide the final size wise qty
vendor immediately after betting process. (containing
to the buyer & for internals.
style wise qty)

Buyer shares the final master file to the

Bulk fabric & trims order Vendor sourced vendor for trim booking & for finance
placing. fabric. team for PO & barcode processing.

Sourcing fabric, trims from Time & action plan sharing

nominated suppliers. by MAX.

Separate PO is sent
for Photoshoot PO & barcode sharing to the vendor
sample.

All the goods must be packed as per

the PO instructions.
 PRE PRODUCTION ACTIVITIES.

APPROVALS

 Lab dip approval

After the tech pack is shared, vendor /supplier will send the lab dips, strike off, desk
loom submission to the MAX to check the weaving/ colour shade, print quality,
repeats.

 TRIM FABRIC APPROVAL

Trim fabric has to be approved form the first of bulk by the vendor before the bulk
fabric goon. Any issues regarding fabric have to be highlighted before the bulk
production.

 TRIMS APPROVAL
Vendor need to send the various types of trims like button, tapes, zipper, main label,
thread, size labels, price labels, composition labels and get approval before the
production start.

 Hand Tags approval

Vendor must get approval for all the tags like hand tags, price tickets, stretch tags etc.
… supplier will send the artwork and sample tags to the buyer, but vendor must
follow the approval closely with supplier and vendor.

 Label approval: -Labels contain main label, sub label, badge, stretch label, blend
label. Vendor must get all the labels approval before the bulk production is start.
Vendor must follow the approvals closely.

 ART WORK :-If there are any special tags, wash care labels, vendor needs to get
approval before the production. If any delays occur vendor is answerable to the buyer.

SAMPLING TYPES AND DEVELOPMENT PROCESS

Each and every sample submitted by the vendor, must update in the PLM before sending. All
the samples will be reviewed as per buyer requirements.

BETTING SAMPLE

Betting sample is the first sample which vendor must submit with the same fabric colour &
quality along with the costing. Sample will be examined by the buyer along with the team
any corrections or for changes which has to be done. Betting sample will be presented in the
range presentation.

PROTO/FIT SAMPLE

Proto sample is a sample which is submitted to check fit & measurement. Each sample will
be put to dummy model to check whether vendor has followed all the comments &
measurements as per the techpack.

If a fit is unsatisfactory buyer may ask for re- submission.

FPT SAMPLE

FPT sample is submitted to check fabric print quality, colour durability, strength.

PP /GPT SAMPLE

PP sample is a original sample, it must be submitted in all actual fabric, trims etc…..if a
vendor has followed all vendor comments , buyer may seal and send the sample to the
vendor. Vendor can start the production. The buyer must view the pre-pro to determine if all
standards have been met by the supplier.  Buyers can check the sewing construction, body
measurements, fabric colors, trim colors, trim quality and placement, etc.  The pre-
production samples must be submitted PRIOR to clothing production so that the buyer has
the opportunity to point out to the supplier if any errors or misunderstandings are discovered.

SIZE SET SAMPLE.

After the PP sample is approved, vendor needs to offer the factory size set samples to the
Respective QA, in all the sizes. QA will check all the size set samples as per requirements.

QA will check the sample, whether they have incorporated all the comments given for pp
Sample. The main purpose of size set sample is to check the factory’s capability to make the
sample in all sizes. The size set sample should be made in the actual fabric and trims. The
samples can be made in the sampling room or actual production floor, as required by the
buyer. Bulk cutting of fabric for production should start only after size-set sample get
approved.

SHIPMENT SAMPLE/PHOTOSHOOT SAMPLE

 Buyers may ask for the shipment samples which factory needs to pull form the actual
shipment and sent to buyer.
 The main purpose of this sample is to assure buyer about the actual shipment dispatch.

SAMPLE APPROVAL PROCESS.

 Fit approval process
Fit sample to be submitted in Actual Quality fabric & color, spec to be followed as per
PLM (respective style) & review chart must be updated by vendor to essentially
match pre-spec given. Else sample will be returned “or” Rejected.

Designer & buyer

evaluate the sample
based on style,
design, trims etc.…

Comments updated in the PLM, Handover sample for

reviewing fit & construction.

Sample not mean for fit

review viz, GPT samples,
reference samples, Proto Respective tech designer will review fit Fit sessions will be done with
sample etc. will not be sample against given pre-spec along with buyer for all styles except basics
reviewed for FIT(type of buyer. & repeated styles.
sample to be mentioned in
the TAG)
All placements approvals to be
Final FIT comments are taken during fit approval like
uploaded in the PLM. embroidery, print, accessories
etc.…

Sample fit, design NO If not will ask for

Once the fit is approved,
Fit sample is approved
MAX will reveal the grade
spec for all other size in
PLM.

If there is any comments updated in PLM by tech designer,

vendor must submit pp sample by incorporating all the
comments.

REGIONAL DISTRIBUTION CENTER

Max has 400+stores all over India and for the distribution of the
merchandise all over the stores. There are 8 regional distribution center
where the whole assortment of the design done as per the open to buy plan.
There are 8 regional distribution center
Bangalore regional distribution center
Chennai regional distribution center
Hyderabad regional distribution center
Kerala regional distribution center
Ghaziabad regional distribution center
West Bengal regional distribution center
Indore regional distribution center
Mumbai regional distribution center
E- Regional distribution center

PROJECT

MCDM tool for evaluation and selection of Supplier for

NOOS programs in the Denim Buying Department.
 ABSTRACT

The aim of this study is to assist the company in assessing the potentials of identified suppliers. Most

research on supplier selection criteria for Max retail was mainly conducted based on the rating system.

Selecting a supplier is a tailor made complex problem involving qualitative and quantitative multi-criteria

decision making. First, an in-depth interview was used to explore what criteria in Max retail were utilized on

supplier selection. The findings will be a contribution to the selection process of Max retail as they can

utilize these criteria to select capable suppliers. An analytical hierarchy process (AHP) model that Garment

Company can use for the selection of suppliers will be presented. In addition, strategic priorities for the

supplier selection problem are identified and weights are developed to select the right supplier that fits the
company’s strategy. Choosing the right supplier could give the right quantity and the right cost on the right

timeline.

Key Words: Supplier selection and evaluation process, Retail, Analytical Hierarchy Process (AHP)

INTRODUCTION

The concept of retail business has changed from the manufacturer driven to customer driven.
Buying department are playing a vital role in this global purchasing environment to deliver
the right product, at right place, at right price, in right quantities and qualities at right time
with right Manufacturing Process with maintaining proper social compliance. So it’s an
utmost importance to the buyer to evaluate and select vendors, and structuring the vendor
base to fulfil the customer requirements. Effective sourcing is the main indicator of an
enterprise’s competitive advantage. However, the selection of right suppliers at the right
price is a challenging job of sourcing, which is a complex process involving a variety of
criteria. These criteria may vary relying on various judgement factors and the purchasing
circumstances also. It has been argued that selecting suitable suppliers in textile and apparel
industry is a hard issue because of its requirement on selection criteria and decision-making
methods which are characterized with unpredictable and uncertainty.
The research is developed into 5 sections. Section 1 presents the general introduction to the
topic. Literature review on supplier selection and selection criteria are presented in section 2.
Section 3 highlights the methodology applied in the research followed by analysis and
discussion in section 4. The paper concludes with the findings and its contribution to
industrial practices and highlights paths for future research.

REVIEW OF LITERATURE

The fast changes in the industry require relationships with suppliers possessing different
skills and products. Furthermore, the fashion industry requires suppliers that understand the
importance of changes and the ability to get trends into the store and available to the
consumer in shortest possible time. These changes constitute a challenge for retailers and
suppliers because they have to be active all the time to be able to fulfill consumer demand.
The companies have to offer a broad variety in size, color, design etc. and this has to be done
on a consistent, regular basis to be able to retain the customers.

To overcome this problem, we reviewed their current supplier selection mechanism, which
we defined as conventional supplier selection process as shown in Figure 1. The selection
processes of some similar industries were monitored closely and the scenario found was
almost same for all of them. From this selection process, it is clear that there is no specific
set of objectives or corresponding indicators by which a supplier can be chosen. It is more
like an intuitive process. Supplier selection procedure needs to be well-defined and it should
reflect the company’s demand towards a supplier. As suppliers are the primary sources of
raw materials/inputs, their interruption in deliveries may cause a great harm for the entire
chain and consequently the profitability of the overall supply chain will be reduced. (Karami
et al., 2021)So, a set of indicators and a proper evaluating and selecting method is required
for future being.(Utama et al., 2021) As per the conventional supplier selection process, the
following disadvantages are come out:

DISADVANTAGE CONVENTIONAL SUPPLIER SELECTION

• It does not consider multiple objectives. Only a few criteria are observed and based on
these criteria, the decision which is made often proved wrong in the long run.

• There is no specific proportion of the criteria so that it can be understood to what extent
any criterion is emphasized. As a result, there may have a fair chance to get omitted a
potential supplier.

• There is no subdivision of the criteria and so mutual comparisons among the subdivisions
are absent here which may help the evaluation process to become more precise.

• It does not collect sufficient data to evaluate a supplier. Very few data are collected instead
of a thorough investigation and so the accuracy of the result is very poor.

• It does not perform any quantitative analysis to assess the value of the supplier in most of
the cases. For this reason, it is extremely difficult to know the difference between the
selected one and the others.

• There is no set of indicators which help to evaluate and determine the best supplier. So,
ratings of suppliers are made intuitively in actual practice.
Figure 4: Conventional supplier selection process

But the proposed supplier selection model as shown in Figure 2 eradicates the drawbacks of
the conventional supplier selection process. The process starts by determining the key
supplier selection and evaluating indicators.(Marufuzzaman et al., 2009) Then, sufficient
data is collected against these indicators. By using AHP, the weighted values of each
supplier are computed. The proposed selection process ends by validating the results and
thus selecting the best supplier in an authentic and standard way. This selection process
considers significant evaluating indicators and each contributes to determine the best
supplier. Besides, this process always compares one against another and these comparisons
make the total selecting process more methodical than the conventional process.(Koprulu et
al., 2007a)

Figure 5: Proposed supplier selection model

DECISION ANALYSIS MODEL FOR SUPPLIER SELECTION
Analytical Hierarchy Process (AHP) method

AHP is a decision making tool that decomposes a complex problem into a multi-level
hierarchical structure of objectives, criteria, sub criteria and alternatives. Applications of
AHP have been reported in numerous fields such as conflict resolution, project selection,
budget allocation, transportation, health care and manufacturing.(Wang et al., 2020) It
presents a model, based on the analytical hierarchy process (AHP), that a garment company
can use to select its suppliers, and create a strategy for supplier relationship management.
The framework of the performance measurement is based on quantitative and qualitative
measurements.

This section begins with an outline of some key theories regarding supplier selection criteria
using AHP. Therefore, the process of supplier selection garners much focus from purchasers.
This process is divided into three procedures: preselection, selection, and post-selection.
During preselection, it is necessary for companies to set the strategic goals for sourcing.
(Bielecki, n.d.)Then, the selection stage begins with numerous prospective suppliers and
ends with the most favorable supplier. A set of criteria is established to evaluate and select a
satisfactory supplier during this process. After the selection process, the purchaser begins
collaborating with the selected supplier. These three phases are overly complicated for
decision makers to perform, particularly the selection stage, as suppliers affect a company’s
performance. However, the selection of suppliers can be easily solved by applying the multi-
criteria decision-making (MCDM) method, which considers the decision under multiple
conflicting criteria.(Nong & Ho, 2019a) The MCDM method consists of four components:
alternatives; criteria; weight of each criterion; and the measured performance of each
alternative in terms of the criteria.

AN ANALYTICAL HERARCHY PROCESS MODEL FOR

SUPPLIER SELECTION.

The AHP provides a framework to cope with multiple criteria situations involving tangible
and intangible, quantitative and qualitative aspects. It consists of three steps:
1. Decomposing the complex problems into a hierarchy of different levels of elements.
2. Using a measurement methodology to establish priorities among the elements.
3. Synthesizing the priorities of elements to establish the final decision.
At the first stage, the issue and goal of decision making brought hierarchically into the scene
of the related decision elements. (Koprulu et al., 2007b)Decision making elements are
decision indicators and decision choices. The group established a hierarchy according to
Figure 1 which should reflect the understudy problem.

Figure 6:Sample Hierarchical Tree

In second step and in order to conduct pair comparison, a questionnaire should be designed
and distributed among the respondents (can be managers, experts, users and etc.) (Shukla,
2016a)to collect their opinion. It is noteworthy that each decision maker entered their desired
amount for each member and then individual judgments (of each respondents) have been
converted into group judgments (for each one of the pair comparison) using their geometrical
average.(Shukla, 2016b) The scale ranges from one to nine where one implies that the two
elements are the same or are equally important. On the other hand, number nine implies that
one element is extremely more important than the other one in a pairwise matrix. The
pairwise scale and the importance value attributed to each number are illustrated in the Table
2 shows the sample of the questionnaire.
Table 1: Scores for the importance of variable (Saaty's Scale)

The data analyze procedure involves the following steps. First the pairwise comparison
matrix which is called matrix A is extracted from the data collected from the interviews. The
principal right eigenvector of the matrix A is computed as ‘w’

To reach a convergence among the set of answers in to successive repetition of this process,
calculation should be repeated several times in order to take a decision when facing an
incompatible matrix. (Su & Gargeya, 2016)Then, the following formula is applied to transform
the raw data into meaningful absolute values and normalized weight w = (w1, w2, w3…
wn):

A: pair wise comparison

w: normalized weight vector
n: no. of row/column

Row AVG for

Normalised criteria
A A1 A2 A3 Sum(w) A1 A2 A3 weight=X
A1 1i m A1 1/SumA1 i/SumA2 m/SumA3 A1+A2+A3/3
A2 1/i 1n A2 (1/i)/SumA1 1/SumA2 n/SumA3 A1+A2+A3/3
A3 1/m 1/n 1 A3 (1/m)/SumA2 )1/n)/SumA2 1/SumA3 A1+A2+A3/3
Coloum
Sum Sum A1 Sum A2 Sum A3
In the last step, in order to validate the results of the AHP, the consistency ratio (CR) is
calculated using the formula, CR = CI/RI in which the consistency index (CI) is, in turn,
measured through the following formula:

Ax = λmax*x
λmax = (Ax)/x

CI = (λmax –n)/(n-1)

The value of RI is related to the dimension of the matrix and will be extracted from Table 3.
It should be noted that consistency ratio lower than 0.10 verifies that the results of
comparison are acceptable.(Nong & Ho, 2019b)
Table 2: The value of Random Consistency Index

METHODOLOGY

Supplier selection decisions are taken following the creation of a supplier shortlist during the
pre-qualification phase of the supplier relationship framework shown in Figure 3. They are
complicated decisions since various criteria must be considered in the process. A significant
number of quantitative and qualitative supplier attributes should be examined. Assessments
should be made using objective and subjective criteria, and trade-offs should be established.
A strategic approach towards purchasing may further emphasize the need to consider
multiple criteria.

The evaluation of Supplier is a complicated decision problem. The complexity comes from:
1) the relative difficulty to conceptualize and structure the numerous components of the
evaluation problem into an analytical framework; 2) the nature of the components in this
process; some are quantitative whereas others are subjective; and 3) the large number of
alternatives as the competition in the marketplace increases.

Selecting a supplier is a tailor made complex problem involving qualitative and quantitative
multi-criteria decision making. First, an in-depth interview was used to explore what criteria
in Max retail were utilized on supplier selection. The findings of the study suggest that there
are four supplier selection criteria including Quality, Cost, Location, Flexibility and
Delivery. Each criterion comprises certain sub-criteria to make the supplier selection criteria
set more comprehensive.

The AHP approach, as applied to the

supplier selection problem, consists
of the following five steps:
1. Specify the set of criteria for evaluating the supplier’s proposals.

2. Obtain the pairwise comparisons of the relative importance of the criteria in achieving the
goal, and compute the priorities or weights of the criteria based on this information.

3. Obtain measures that describe the extent to which each supplier achieves the criteria.

4. Using the information in step 3, obtain the pairwise comparisons of the relative
importance of the suppliers with respect to the criteria, and compute the corresponding
priorities.

Figure 3: Flow chart of Supplier Selection

NOOS DENIM PRODUCT

IMPLEMENTATION STEPS OF PROPOSED SUPPLIER
SELECTION PROCESS

Step 1: CALLING FOR PUBLIC TENDER

This is the first step of the proposed process in selecting a new supplier from different
available suppliers. In this step, firms are invited publicly to tender against the requirements
of the company as in the traditional process. The demands of the company should be clearly
stated in the advertisement so that the supplier may understand everything easily without any
confusion. As the main target is to select the best supplier among different alternatives, the
calling approach should be in such a way that only the better suppliers are encouraged to
apply. Consequently, the initial screening will not be that much time-consuming. To ensure
the fairness of the selection process, the applicants may also know the selection procedures
and the steps included. They should conceive that if they want to compete, they have to be fit
for the job. Every supplier will be given equal priority without being biased.

Step 2: DETERMINATION OF KEY CRITERIA AND SUB CRITERIA IN

SUPPLIER SELECTION PROCESS

Supplier selection decisions are complicated by the fact that it is influenced by various
criteria and conditions in the decision making process and each company has their own
requirements. Generally following are the important factors which are responsible for
affecting the business performance of firm.
 Product Cost
Cost
Profitability

Product
Grade

Inspection
Quality
Date

Inspection
Status

Development
Lead Time

Delivery
Delivery
Window
CRITERIA
On Time
Delivery
SUB- Criteria
Production
Flexibility
Flexibility
Negotiability

Storage
Capacity
Capacity
Production
Capacity

Geographic
Location
Location
Mode of
Transport

Table 1: Supplier selection sub-criteria

Further each Supplier selection and performance or evaluation criteria is divided into sub
criteria which are given in table1. The supplier selection decision-making is usually long and
complicated as discussed earlier and the selection criteria’s analysis has been studied by
various scholars through the years. Each criterion for supplier selection and evaluation are
discussed in Table 2.
Table 2: Criteria evaluation

Cost factor is one of the most important elements that influence strongly to select supplier. Cost includes
supplier’s Product cost, and the charge for Transpotation however features such as labor and materials cost
Cost needed to be concerned as well.

There is no doubt that quality is one of the most fundamental factors to evaluate when choosing a new
supplier as the price is now considered to be overwhelmed by the product’s quality.
Quality

Delivery has a strong impact on the sourcing strategy especially in the garment industry which features short
life-cycle products. Consequently, delivery time from the origin to destination place is crucial for the
business. The delivery time is counted as the total time that is needed from ordering to production process and
Delivery shipment.

In a selection, the suppliers flexibility is considered a tool to cope with the environmental uncertainties and
Flexibilit the changing of market demand.
y

The Capacity to produce required quantity and inventory availability in the manufacturing unit play a vital
role in selection of Supplier.
Capacity

Generally the location between supplier and buyer influences the delivery time as it can take months for
shipping from one place to another.
Location

Detailed Data collected and analysis against Criteria/Sub criteria of NOOS Product

Criteria_Subcriteria.
xlsx

Table 3: Summarize Data of Criteria

Average of Average of Production Max of Product

Row Labels PROFITABILITY Capacity Cost
GOLDCOIN FASHION 10% 250000 455.00
NISSAN SYNTEX 8% 200000 540.00
VIVAA TRADECOM PVT
LTD 12% 300000 305.00
Z.Z.CO 8% 250000 525.00
Step 3: BY USING AHP METHOD COMPUTE WEIGHTED VALUE OF
EACH SUPPLIERS
Now, using AHP we will determine the weights put against each key criteria. So, we begin
by writing down a 6 × 6 matrix which is known as pair wise comparison matrix A. The entry
in row i and column j of A (ij) indicates how much more important objective i is than
objective j. Then,
Table 4: Pair-wise comparison matrix

A(ij) Cos Qualit Deliver Capacit Flexibilit Locatio

t y y y y n

Cost 1 2 4 5 3 2

Quality 0.5 1 2 2 3 2

Delivery 0.25 0.5 1 2 2 3

Capacity 0.2 0.5 0.5 1 2 4

Flexibilit 0.3 0.3 0.5 0.5 1 2

y

Location 0.5 0.5 0.3 0.25 0.5 1

Step 4: MEASURE SUPPLIER PERFORMANCE

Evaluating the alternative suppliers according to the used model to select the best supplier is the next step.
Every supplier has to be evaluated factor by factor by the purchasing team in order to get the total score of
all factors.
Table 5: Comparative supplier selection criteria weights for different suppliers

Criteria   Alternative Supplier Weights(Y)

Weight(X)

Cost 0.36   0.51 0.20 0.17 0.20 0.25 0.39

Quality 0.20   0.24 0.24 0.37 0.24 0.35 0.13

Delivery 0.15   0.15 0.17 0.19 0.18 0.10 0.08

Capacity 0.13   0.10 0.39 0.22 0.05 0.24 0.39

Flexibility 0.08

Location 0.08
Step 5: IDENTIFY SUPPLIER PRIROTY & SELECTION
Based on the Criteria, weights of each alternative can be evaluated and summarized. The
summaries of overall attributes are shown in Table 6. In short, the developed model helps to
choose the right supplier. It consists of many steps which are in order defining criteria for
supplier selection and defining sub-criteria structuring the hierarchical model, prioritizing the
order of criteria, measuring supplier performance, and identifying supplier priority and
selection.

Table 6: Final score of each supplier s' results and ranking.

Final Selection
VIVAA 0.33 Viva have maximum Value.
GOLDCOIN 0.26
NISSAN 0.15
Z.Z.CO 0.20

CONCLUSIONS

In this study, six criteria were identified, and the priority measures as the sub-
criteria, and then an AHP-based model was formulated to select the best supplier.
After finding the Criteria and alternative weights, they can be used to determine
the final weights of supplier occupying the last level of hierarchy. From the
above calculations it is clear that supplier VIVAA should be selected as it has the
highest score. Using the AHP model, the criteria for vendor selection are clearly
identified and the problem is structured systematically.
The above result is obtained after calculating the weights of each criterion. The
result shows that the quality, delivery and trust are the most important strategic
priorities to be considered in the supplier selection.
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