Powered by OpenAIRE graph
Found an issue? Give us feedback
addClaim

A development of vendor selection process for commercial banking industry in Thailand by Fuzzy Analytical Hierarchy Process (FAHP)

Authors: Vasinee Upaiboon;

A development of vendor selection process for commercial banking industry in Thailand by Fuzzy Analytical Hierarchy Process (FAHP)

Abstract

The ever-changing economic conditions and new disruptive technologies dramatically increase competitiveness among commercial banks. In order to improve their profit, the banks have to continuously improve their efficiency, i.e. focus on developing core business and delegate other business activities to outsourcing vendors. However, price should not be the only criterion for selecting vendors. Other factors such as quality, production lead time, warranty etc. should also be considered. Besides, some factors can be in qualitative forms, which makes the purchasing task even more difficult. The appropriate tools are therefore needed to simplify the task and mitigate the human bias effect in order to get the best supplier selection decsions for each project. A large Thai commercial bank was chosen as the case study in this research. The case study bank has a purchasing department who oversees that purchasing activities for the three main areas: Systems and Maintenance, Building, and Information Technology. Price Performance Ratio (PPR), defined by vendor’s offered price divided by performance, is used by the bank’s procurement department as the main criterion to select a vendor. With PPR as the criterion, vendors with lowest offered price usually win the contract, even though this often lead to less-than-impressive results. In this research, we proposed the application of Fuzzy Analytical Hierarchy Process (Fuzzy AHP) to select vendors based on variety of attributes. Both in quantitative and qualitative forms such as price, quality, operating difficulty, and warranty conditions can be considered. An easy-to-use, yet effective software implementing the Fuzzy AHP was developed and tested on three real cases. The results showed that the program's result might be different from PPR one as the program criteria has been adjusted to reduce importance of the cost criteria and increase on other related criterion.

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    0
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Upload OA version
Are you the author of this publication? Upload your Open Access version to Zenodo!
It’s fast and easy, just two clicks!