Development of a Maintenance Supplier Selection Model for the Thai Petrochemical Industry

Abstract

This paper reports on research in progress on development of a supplier selection model for the maintenance department of a petrochemical firm in Thailand. Although there are various supplier selection models available, few if any have addressed the special needs of the petrochemical industry, which is highly competitive and has several conflicting internal factors including high price competition (requiring cost leadership and therefore operational cost controls), mission-critical quality requirements, and at least in Thailand a weak and fragmented supply chain and logistics network that can delay supplies and a shortage of key human resources and skills. The preliminary supplier selection model derived from the literature review incorporates six requirements which sometimes conflict, including cost, quality, time, reliability, flexibility, and human resources. The research in progress uses a mixed methods approach that incorporates interviews with industry experts to provide user, manager, and supplier perspectives, coupled with an industry survey of those involved in supplier selection. This research is expected to deliver a refined and reliable supplier selection model that can be used in practice to meet the needs of the Thai petrochemical industry for maintenance supplier selection and monitoring of outsourcing contracts and performance.