A Conceptual Framework for Procurement Decision Making Model to Optimize Supplier Selection: The Case of Malaysian Construction Industry

Abstract

This paper intends to fathom the current state of procurement system in Malaysia specifically in the construction industry in the aspect of supplier selection. This paper propose a comprehensive study on the supplier selection metrics for infrastructure building, weight the importance of each metrics assigned and to find the relationship between the metrics among initiators, decision makers, buyers and users. With the metrics hierarchy of criteria importance, a supplier selection process can be defined, repeated and audited with lesser complications or difficulties. This will help the field of procurement to improve as this research is able to develop and redefine policies and procedures that have been set in supplier selection. Developing this systematic process will enable optimization of supplier selection and thus increasing the value for every stakeholders as the process of selection is greatly simplified. With a new redefined policy and procedure, it does not only increase the company's effectiveness and profit, but also make it available for the company to reach greater heights in the advancement of procurement in Malaysia.