STUDY OF SUPPLIER PERFORMANCE SCORECARD SYSTEMS OF CAR MANUFACTURING COMPANIES IN INDIA: A LITERATURE REVIEW

“The constant pressures of Globalization and Competitive advantage have influenced organization to attain goal of low cost, high quality, flexibility and more customer satisfaction.” (Patil A.N., 2014). Good supplier base has become important part of strategies in gaining competitive advantage. For this effective supplier evaluation in terms of measurement and monitoring plays a vital role. “Choosing the right supplier plays an important role in making organizations profitable and keeping them focused on their potential strengths. Therefore, evaluating the quality of suppliers carefully is vital for any company”. (Thesis A. 2012). Measuring performance of supplier is complex task due to numerous factors including regional organizational culture, Industry trends and issues. In this paper, study is made for exploring supplier evaluation based on: (1) Evaluation parameters identified by 161 researchers from 1966 to 2012 (2) Scorecards used by Indian car manufacturing companies for evaluation of their suppliers and (3) International standard ISO/TS16949. Based on the result of the study of literature, we conclude that supplier evaluation parameters are no longer fixed and will continue to change, based on industry dynamics. Supplier evaluation parameters include both, traditional parameters (like cost, quality, delivery) and nontraditional parameters (technical capability, reputation and position in industry etc). Experience and studies have shown that there is no best way for evaluating suppliers; it varies from country to country, also from one company to other. “Increased competition and globalization of markets facilitated by Internet-based technologies have combined to dramatically change the ranking of factors while introducing new criteria to the supplier evaluation process.” (S. Hossein Cheragh, Mohammad Dadashzadeh, Muthu Subramanian, 2004) JEL Classification: L2, L20, L21, L25, L6, L60, L62, L25, M10, M11, M19