Generic Process for Supplier Evaluation: Safety, Quality, and Cost in the Chemical Industry

Abstract

The global chemical industry is a vital sector responsible for producing a wide range of products, from essential plastics to life-saving medicines. Within this complex industry, organizations face significant challenges in managing the safety- and quality requirements, while minimizing cost of raw materials. This thesis investigates factors that Company X, a functionally structured manufacturing company within the chemical industry, should consider when developing a process for evaluating new suppliers of existing raw materials. The thesis identifies four factors impacting safety, quality, or costs during supplier evaluations: Clear Roles and Responsibilities, Enhanced Communication and Collaboration, Structured and Adaptable Evaluations, and Documentation Access and Clarity. By emphasizing these factors, a specific process for Company X is developed to work as a guidance for fulfilling the main purpose of the thesis. The main purpose is to develop a generic supplier evaluation process for other functionally structured manufacturing companies in the chemical industry, aiming to reduce unnecessary costs, while ensuring safety- and quality requirements. The proposed generic process includes designated leaders with overarching responsibilities, enhancing communication and collaboration among functions, standardizing mandatory steps while allowing for case-specific adaptations, and maintaining clear and accessible documentation. This approach aims to ensure safety- and quality requirements, while reducing unnecessary costs. Overall, the thesis highlights the importance of a structured yet adaptable approach to supplier evaluation. The findings emphasize how a well-defined process can ensure safety- and quality requirements, while reducing unnecessary costs. This thesis offers a practical framework that can be adapted by other functionally structured manufacturing companies in the chemical industry, helping them manage supplier evaluations more effectively.