Supplier selection problem in local sourcing at central retail Vietnam

Abstract

At the beginning of the global pandemic in the year 2020, numerous companies across a variety of industries experienced huge losses, and the retail industry in Vietnam was not an exception. Despite the significant monetary losses that were experienced, the retail industry was able to make a full recovery in the months leading up to 2021 as a direct result of the nation's successful response to the epidemic. Therefore, positioning the Vietnamese retail business in an advantageous position to flourish in the years to come. Retail businesses are seizing this chance to evaluate and enhance their standard operating procedures to better cope with the aftermath of the pandemic. Management of the supply chain in general, and sourcing in particularly, are crucial and will affect the activities of the firm. Central Retail Vietnam (CRV) which is one of the leading retail companies in Vietnam market has faced with many challenges in sourcing locally and the symptom is the decreasing of order quantity and order value. The improper selection of suppliers is the primary source of this issue, as indicated by more research into the analytical data information obtained from an interview with a key individual within the organization. The absence of a method for evaluating suppliers throughout the supplier selection process was determined to be the fundamental source of the problem that was outlined above. Because of this, two different potential solutions have been suggested for the purpose of solving this problem, and the primary solution has been determined based on the criteria of the stakeholders. In conclusion, an action plan is developed and put into action based on the primary solution to assist the organization in improving the existing problem.