MCDA based approach to supplier evaluation : steel industry enterprise case study

Supplier selection is a decision of strategic nature that significantly influences a company’s competitive advantage. The supplier selection criteria list has evolved over the years. Traditional criteria are: cost, quality and delivery. In manufacturing industry, those were highlighted as being the most important supplier selection criteria. The paper focuses on of the steel industry company in Poland. The evaluation sheets in this enterprise are the basis for creating a vendor ranking. However, they do not contain evaluation criteria in line with the sustainable development strategy. The discussed company requires introducing significant changes in the supplier selection criteria. Thus, the aim of this paper is to implement a method that will help in the selection of suppliers. Studied company operates in the area of ​​prefabrication of steel structures. In the paper, the AHP method is used. The results show dominant position of 3 suppliers out of 11. Moreover, the case study shows that in analyzed enterprise managers do not use the evaluation criteria that are in line with the sustainable development strategy. Thus, this area requires introducing significant changes in the supplier selection criteria in this company.