Factors influencing supplier selection and level of supplier involvement in research and design (R and D)

Abstract

R and D is useful for society as it builds up knowledge and it is one of the key inputs for innovation. Over the past decade the need to gain global competitiveness on the supply side has increased substantially. In consideration of the important contributions of R and D, the research is designed to identify the activities and critical factors in supplier selection criteria implementation for R and D process improvements. Supplier involvement in product and process design and continuous improvement activities were found to have a positive impact on competitive advantage and performance of R and D. The concepts and critical factors of supplier selection in R and D and other industries from various studies have been analyzed and a framework for the research had been developed. With specific attention to R and D, the research has successfully examined the awareness level, supplier involvement activities, importance and implementation of supplier selection at a firm level. The research was conducted in Dyson Manufacturing Sdn Bhd, which is the R and D centre for Dyson with a population of around 150 engineers dedicated to new product development (NPD). Questionnaire survey and interviews were used to measure the importance and implementation of these supplier selection critical factors. Data analysis was carried out to analyze the important supplier involvement activities, the relationship and problems in implementation of these critical factors. The study results indicate that quality of deliverables, delivery capability, production capacity, supplier relationship, supplier culture, design and technical capability, cost and supplier reputation are critical factors for supplier selection in R and D. Fifteen supplier activities have also been identified as important in R and D. The study results show positive level of supplier selection factor implementation in R and D. With the understanding of supplier critical factors and current activities, a model for implementation in R and D and suggestions to the management is made for supplier selection and integration improvements.