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Project Description : In the current competitive business environment, the relationship between buyers and suppliers is no longer as antagonistic as the traditional way, but emphasis is geared more towards forging partnerships which benefit both parties. The emergence of the supply chain concept made buyers and suppliers realise that long-term cooperation could be jeopardised by a lack of mutual trust. High priority is given towards suppliers who are able to deliver promises and commit to and support the buyer’s vision. Qualifying and shortlisting suppliers is the process by which firms identify, evaluate, and contract with suppliers. Supplier selection is the important aspect of company’s overall supply chain management process. The supplier selection process deploys a tremendous amount of a firm’s financial resources. In return, firms expect significant benefits from contracting with suppliers offering high value. Today the average manufacturer spends roughly half its revenue to purchase goods and services. This makes a company’s success dependent on their interactions with suppliers. Supplier selection is one of the most important functions to be performed by the purchasing department. The decisions related to the supplier selection problem determine the long term viability of the company.
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