This paper investigates the selection decision of automobile component suppliers. Based on this study, this paper is intended to produce top priorities that contribute to future trends and alternatives of automobile component suppliers.
First of all, this paper will research the current international and national automobile industry. The automobile industry is one of the major general mechanical industries which have had the largest effect on economic growth of South Korea over several decades. Automobile industry is a collective mechanical industry, since it requires over 20,000 components from individual companies or suppliers to complete a automobile. Thus, the automobile industry is consisted with automobile assembly, sales and maintenance, transportation and logistics parts, which generates of employments and triggers sophistication of automobile industry.
This paper has conducted a survey of twenty seven experts who are well-known purchasing managers among domestic automobile manufacturers or automobile component manufacturers. This study outlines several theories about appraisal standards under these theories.
The main criteria for deciding automobile component suppliers include price, quality of products, reliability, ability to meet the due date, and production facility. As a result of analyzing the survey through the AHP, about 34% of the decision were made by "quality of products"; 25% on ability to meet the due date; 19% on reliability; 13% on price and 10% on production equipment. Therefore, it is the most crucial for automobile component suppliers to provide "high-quality product" in the first place, which displays the preference of motor companies for "high-quality products".
More specifically, purchasing managers believe that price competence with their competitors in terns of "prices" is important when deciding automobile component suppliers; in turn, the quality and the capability to research and develop of components in "products", meeting the due date in "reliability", prompt replacement for defective products and prompt response to emergency orders in "meeting the due date", and capability of possessing equipment in "production equipment".