Application of an integrated decision support process for supplier selection

In many firms the value of purchased materials and components accounts for 50-80% of total cost of goods sold. For those firms, purchasing decisions cause enterprise wide side effects, and, therefore, should be treated as an integration matter. Supplier selection is a problem that deals with both qualitative and quantitative issues that must be measured using information that is normally spread within the enterprise. To see how this problem was addressed in a small construction company in Brazil, an integrated procurement process, which is a simplification of a more complex methodology, is presented. The case study shows the importance of simpler, yet efficient, solutions to address the decision making problems of smaller enterprises in development countries-a research and commercial niche not well developed yet.