Global suppliers’ selection in foreign-aid funded procurement using the quality function deployment matrix

Abstract

The supplier selection criteria used by the industrial buyers are considered critical elements for suppliers’ choice process. However, little attention has so far been given to identify the specific selection criteria, and to analyse level of importance the buyers assign to the criteria in the context of developing economies. Using a sample of Executing Agencies (EAs), this study identified the supplier assessment criteria and their relative importance in foreign-aid funded procurement in Bangladesh. Data were collected against 32 seven-point semantic differential scaled items belonging to four categories of supplier assessment criteria, such as economic, reliability, familiarity with supplier, and other capability. The Quality Function Deployment (QFD) matrix was then applied to benchmark the performance of three major suppliers against buyers’ (i.e. EAs) requirements. The results indicated that the suppliers involved in foreign-aid funded procurement are required to carefully design their offerings to meet buying organisations’ requirements such as delivery on time with high level of quality products and services, maintain high level of technical support, provide better warranties, and maintain high calibre management system.