Developing a Tool for Evaluating the Suppliers’ Risks: A Case Study
Objective: This research aims to recognize the risks that the case study company faced from its suppliers and to develop a tool to assess those risks. To achieve this purpose, the research will propose tool for the company in order to identify and evaluate the supplier risks and make the process more transparent. Since there are no detailed structured ways for this purpose in the case study company and the consequences can be very costly.
Methodology: The qualitative method is used in this research. The main data sources include the case study company internal documents and the semi-structured interviews with the key members involved in the research topic.
This research uses the thematic analysis to analyze the qualitative data. Based on this analysis the main weaknesses of the current procurement operations are defined. Also, the researcher used the available knowledge in the literature review to develop a conceptual model for supplier risk evaluation.
Findings: The outcome was an Excel-based tool that helps the case study company procurement employees of the case study company to identify their suppliers’ risks, assesses levels of risks, and suggests response plans to deal with these risks. Accordingly mitigate the negative impacts of the supplier’s risks.