Tools for Global Sourcing

Shore et al. (2004) classify supplier selection methods into data-based methodologies and experience-bas methodologies. 

Data-based approaches can only handle defined measurable information and are only adequate for well-structured problems. They use analytical techniques which are frequently used in tactical decisions. On the other hand, experience-based approaches apply hybrid techniques that combine both quantitative and qualitative criteria. They generally employ expert systems, neural networks, and case-based reasoning to define the problem and determine the criteria in the supplier selection decision. The experience-based approaches use brainstorming, cognitive mapping as well as interpretative structural modeling. 

In terms of analytical methods, Weber et al. (1991) present an important review of the most relevant articles in supplier selection. Out of these articles, only 10 of them used mathematical programming. Ghodsypour and O Brien (2001) also present a comprehensive review of the supplier selection methods. These methods vary in their level of complexity, from simple sourcing and matrix methods to advanced mathematical programming approaches. 

The quantitative methods for supplier selection were discussed in detail in Chapter 6 of this textbook. In Table 6.43, we presented a brief summary of some of the recent supplier selection methods published since 2000. Most of the supplier selection methods in the literature have been developed primarily for domestic supplier selection. A few of these mathematical methods have been used in global supplier selection. We believe that most of the domestic approaches can be extended to global sourcing by incorporating the global selection criteria discussed in Section 8.4.3. 

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