An Integrated Approach for Supplier Selection in a Supply Chain: IT Capabilities Approach

In most industries the cost of raw materials and component parts constitutes almost 60% percent of cost of a product (in some industries up to 80%). In this situation، proper sourcing can play a key role in an organization's efficiency and effectiveness، because it has a direct effect on cost reduction، profitability and flexibility of a company. In this paper، a hybrid model consist of Decision making trial and evaluation laboratory- DEMATEL and analytic network process-ANP is presented. In order to construct the inter relation between criteria, DEMATEL is used and to incorporate the effective criteria، analytic network process approach is utilized. Considering increasing importance of IT in supply chain's success, IT capabilities is applied as separate criteria. After developing the model، a numerical example is presented. Result shows that financial and cost, delivery, and IT capabilities are most criteria in supplier selection process. At the end، results and suggestion will be provided.