SUPPLY CHAIN: ASSESSMENT OF SUPPLIER RELIABILITY

Keywords: supply chain, supply logistics, supplier reliability, logistics profile, partnership

Abstract

The article is devoted to assessing the importance of the supplier for the formation of long-term partnerships in the supply chain. At the same time, it is planning to build its logistics profile. A detailed analysis of the company "Epicenter K" was carried out, which, regardless of today's market situation, is modernizing its business: expanding its own retail network and opening new store formats. The supplier activity of "Epicenter K" LLC is analyzed in detail through the prism of the concept of logistics and with an emphasis on such elements as "ordering, purchasing, transportation, storage. For further research on the selected topic, the Śnieżka group of companies (which is one of the leaders in the market of paint and varnish materials in the segment of decorative products) was chosen from 3.5 thousand different suppliers of the company "Epicenter K". This enterprise is one of the leaders in the markets of decorative paints in Hungary and Poland, one of the leaders in the production of paints in Ukraine. After presenting a detailed analysis of its activities, the reliability of the "Śnieżka" group of companies as one of the suppliers of "Epicenter K" LLC was evaluated. In the process of research, information was used regarding the supply of "Śnieżka" building mixes in accordance with the volumes declared in the contract and according to actual data of deliveries. After calculating the number of failures, working time per failure, intensity of failures, and failure-free delivery, the main indicator was obtained. This indicator is the reliability of supply; he hit .883. In order to evaluate further prospects of increasing reliability to "1", a logistics profile of the supplier was formed, which contains 16 evaluation criteria, as a result of which the following negative elements were identified: 1) untimely deliveries; 2) time of order implementation; 3) evaluation of the supply procedure. A set of measures is proposed, which makes it possible to eliminate these negative elements and achieve the maximum level of reliability between the supplier ("Śnieżka") and the client ("Epicentr K" LLC). This complex includes such measures as the possibility of integrating efforts in working on a joint project; improvement of performance indicators of each of the parties due to more productive use of resources, the more thorough establishment of activity priorities; exchange of information and resources; achieving higher standards of customer service; integrated quality management and other measures.

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Published
2022-07-26
How to Cite
Hirna, O. (2022). SUPPLY CHAIN: ASSESSMENT OF SUPPLIER RELIABILITY. Economy and Society, (41). https://doi.org/10.32782/2524-0072/2022-41-39
Section
MANAGEMENT