Supplier selection procedure in telecommunication industry

Abstract

Managing supply chain is important for every organization because it has become a major element in a global economy. The supply chain is a primary system that moves the products or services from supplier to customer. Poor performance in delivering the services will essentially affect customer satisfaction. Previous studies have shown the effects of supplier selection on the organization performance in the services or products delivery. This research focuses on civil infrastructure and pulling cable suppliers in one of the telecommunication players in Malaysia and also on its supplier selection procedure, which is known as Price Rate Table (PRT). This paper initially reviewed the concepts of PRT pool and PRT zoning. We then assessed the level of staff satisfaction on PRT and also its advantages and disadvantages in terms of project performance. This assessment was conducted qualitatively via semi structured interview to a specific project team in the organization. Results showed that for small projects the PRT concept has offered more advantages than disadvantages in terms of project performance. On the other hand, the disadvantages are emphasized more for mega and urgent projects. In this paper, we proposed two selection processes to overcome the issues and also evaluated the processes using strategy canvas. Only the best selection process upon the highest accumulated point obtained is recommended to be adopted in the current organization.