Luận án tiến sĩ: Mô hình lựa chọn nhà cung cấp đa tiêu chí cho công ty dệt may Việt Nam

VIETNAM NATIONAL UNIVERSITY HOCHIMINH CITY INTERNATIONAL UNIVERSITY NONG THI NHU MAI A MULTIPLE CRITERIA SUPPLIER SELECTION MODEL FOR VIETNAMESE TEXTILE AND APPAREL COMPANIES A dissertation submitted for the Degree of Doctor of Philosophy in Business Administration HCMC, July 2020 VIETNAM NATIONAL UNIVERSITY HOCHIMINH CITY INTERNATIONAL UNIVERSITY NONG THI NHU MAI A MULTIPLE CRITERIA SUPPLIER SELECTION MODEL FOR VIETNAMESE TEXTILE AND APPAREL COMPANIES Major: Business Administration Major code: 9340101 Independent reviewer 1: Assoc. Ho Tien Dung Independent reviewer 2: Dr. Nguyen Thi Duc Nguyen Committee members: 1. Nguyen Van Phuong – Chairman 2.

Trinh Viet Dung – Secretary 3. Nguyen Minh Kieu – Reviewer 1 4. Nguyen Duc Tri – Reviewer 2 5. Mai Ngoc Khuong – Reviewer 3 6.

Nguyen The Khai – Member 7. Dang Pham Thien Duy - Member SCIENTIFIC ADVISOR: Assoc. HO THANH PHONG HCMC, July 2020 i TABLE OF CONTENTS TABLE OF CONTENTS. ii LIST OF ABBREVIATIONS.

vi LIST OF TABLES. viii LIST OF FIGURES. ix COPYRIGHT STATEMENT. xii CHAPTER 1: INTRODUCTION TO THE THESIS.

Objectives of the research. Methodology of the research. Scope of the research. Significance of the proposed research.

Structure of the research. 14 CHAPTER 2: THEORETICAL BASIS AND REVIEW OF LITERATURE ON SUPPLIER SELECTION CRITERIA AND MULTIPLE CRITERIA DECISION- MAKING METHOD. Overview on Supply chain in textile and apparel industry .1 The world’s T&A industry. Concepts and theories on supplier selection decision.

Theories on Supply Chain Management. Fischer’s and Lee’s Supply Chain Uncertainty Framework. Total quality management (TQM). Empirical studies on supplier selection criteria .Supplier selection method.

57 CHAPTER 3: RESEARCH MODEL AND METHODOLOGY .1 Methodology for the exploration of supplier selection criteria. Methodology for the selection of suppliers by applying Analytic network process (ANP) approach. 78 CHAPTER 4: RESEARCH RESULTS AND DISCUSSIONS.1 Research result for the exploration of supplier selection criteria .2 Research result for the selection of supplier by applying ANP approach.2 Discussion on research findings. 117 CHAPTER 5: CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH .1 From the managerial perspectives .2 From the policy-maker’s perspectives .4 Limitations and directions of future research.

158 APPENDIX 1 - METHODS APPLIED IN EVALUATING AND SELECTING SUPPLIERS IN THE TEXTILE AND APPAREL INDUSTRY. 158 APPENDIX 2 - SAMPLE SIZE OF IN-DEPTH INTERVIEW APPROACH. 164 APPENDIX 3 - BACKGROUND INFORMATION OF SAMPLES. 165 APPENDIX 4 - A SUMMARY TABLE OF METHODS TO SELECT SUPPLIERS AND DERIVE WEIGHTS.

166 APPENDIX 5 - QUESTIONNAIRE SURVEY ON “A MULTIPLE CRITERIA SUPPLIER SELECTION MODEL FOR VIETNAMESE TEXTILE AND APPAREL COMPANIES”. 176 iv APPENDIX 6 - COMPARISON MATRICES OF CLUSTERS AND INCONSISTENCY RATIOS OF COMPANY A. 188 APPENDIX 7 - COMPARISON MATRICES OF CLUSTERS AND INCONSISTENCY RATIOS OF COMPANY B. 193 APPENDIX 8 - COMPARISON MATRICES OF CLUSTERS AND INCONSISTENCY RATIOS OF COMPANY C.

197 APPENDIX 9 - QUESTIONNAIRE FOR PILOT STUDY. 201 APPENDIX 10 - QUESTIONNAIRE FOR OFFICIAL STUDY. 205 APPENDIX 11 - RESULTS OF PILOT STUDY. 210 APPENDIX 12 - RESULTS OF OFFICIAL STUDY.

227 APPENDIX 13 - TRANSCRIPTION REPORT ON IN-DEPTH INTERVIEW. 275 v LIST OF ABBREVIATIONS AHP Analytical hierarchy process MOQ Minimum order quantity ANN Artificial Neural Network OBM Original Brand Manufacturing ANP Analytical network process ODM Original Design Manufacturing CMT Cut-Make-Trim OEM Original Equipment Manufacturing DEA Data envelopment analysis PGP Pre-emptive goal programming DEFF Design effect DEMATEL Decision Making Trial and PVA Performance value Evaluation Laboratory analysis DM Decision Making SAW Simple additive weighting ELECTRE Elimination Et Choice SCM Supply chain management Translating Reality FOB Free on Board T&A Textile and Apparel GDP Gross Domestic Product TCM Transaction Cost Economics GTMA Graph Theory and Matrix TCO Total Cost of Ownership Approach LGP Lexicographic goal TOPSIS Technique for Order programming Preferences by Similarity to an Ideal Solution FLP Fuzzy Linear programming TQM Total Quality Management vi MADM Multiple attribute decision VIKOR VlseKriterijumska making Optimizacija I Kompromisno Resenjy MCDM Multiple criteria decision making vii LIST OF TABLES Table 2.1: The most used supplier selection criteria .1: Guidelines for identifying significant factor loadings based on sample size .2: The fundamental scale of the ANP .1: Summary of the key criteria.4: Rotated Component Matrix .5: Description of three supplier candidates (alternatives) of Company A .6: Description of three supplier candidates (alternatives) of Company B .7: Description of three supplier candidates (alternatives) of Company C .8: Priorities of alternatives of Company A .9: Priorities of criteria of Company A .10: Priorities of alternatives of Company B .11: Priorities of criteria of Company B .12: Priorities of alternatives of Company C .13: Priorities of criteria of Company C. 105 viii LIST OF FIGURES Figure 1.1: Value added to the product .2: Supply Chain Operations Reference Model .3: Supplier selection framework .4: Structure difference between AHP and ANP .5: Supplier selection model .6: Supplier selection criteria in the hierarchy .1: Supplier Selection Model for the research .2: Multiple Criteria Supplier Selection Model .3: Flow chart for questionnaire development .4: Input data for sample size for frequency in a population .5: Sample size for frequency in a population .6: General form of supermatrix .7: Network structure of example 1 .8: Supermatrix of example 1 .9: Network structure of example 2 .10: Network structure of example 2 .1: Supplier Selection Criteria in the hierarchy .2: Structure of the ANP model in SuperDecision software .3: The sensitivity graph for supplier selection of Company A .4: The sensitivity graph for supplier selection of Company B .5: The sensitivity graph for supplier selection of Company C .1: Comparison with regard to “Lead-time” among alternatives. 119 ix COPYRIGHT STATEMENT This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author’s prior consent.

x ACKNOWLEDGMENT I would not have been able to complete this dissertation without the constant support and help from many people. Some of them deserve a special mention. First of all, I would like to express my profound gratitude and thankfulness to my advisor for his constant support, guidance and encouragement throughout my dissertation. I am indebted to him for his concern, caring, and thoughtfulness.

Without his relentless support and encouragements, it is very hard for me to complete the dissertation. I would like to thank my lecturers at School of Business for valuable knowledge on research methods providing me a better understanding and practice to struggle with my dissertation. Moreover, their constructive comments and suggestions on my research proposal help me better orient and revise my research design and literature review in a proper way. I also wish to acknowledge all of my friends, my colleagues who have brought me a constant source of help and inspiration as well as tolerating me while for the past few years.

Last but definitely not the least, I would also like to express my sincere appreciation towards my family – my parents, my husband, my children for their love, patience and encouragement during my dissertation period. xi ABSTRACT Competitive international business environment in the global textile and apparel market has forced many textile and apparel firms to concentrate on supply chain management in order to face with fierce competition. Supplier selection process, a part in supply chain, has been a prime concern recently because many of firms in the world in general and in Vietnam in particular have been spending considerable amount on sourcing. Although the selection of suppliers is important, most of Vietnamese textile and apparel companies have a very simple process and only choose suppliers intuitively.

This is one of the reasons causing high sourcing costs that often result high-price output, unstable quality products, and then lower the competitive advantage of an organization. Further, most of researches on supplier selection criteria and selection model were done for the large textile and apparel export countries (India, the USA, Hongkong, Iran). Little has been published regarding Vietnamese textile and apparel industry whose export volume accounts for 2% of the global one. It is inappropriate for Vietnamese textile and apparel companies to use the supplier selection criteria and model of the above large countries because the selection of suppliers needs to be built on the specific purchasing context.

Therefore, the purpose of this research is to study a multiple criteria supplier selection model for Vietnamese textile and apparel businesses to enhance their sourcing activities. In order to achieve this purpose, an integrated approach will be employed. Firstly, a qualitative approach in which a multiple case study design with expert interviews was utilized to have an in-depth understanding about supplier selection situation of the Vietnamese textile and apparel industry. Next, a prequestionnaire was built and sent to some practitioners and experts for their revision.

Then, a pilot survey of 31 T&A companies with numerous statistical tests was conducted to validate the xii questionnaire. After that, an official study of 282 respondents was conducted to determine supplier selection criteria which are best suited for T&A companies through exploratory factor analysis. Finally, a multiple criteria decision-making method, in which analytic network process (ANP) was chosen by basing on the characteristics of the T&A industry to select the best suppliers for three illustrated companies. In this research, it is found that the supplier selection problem can be solved in a timely and structural manner.

In terms of theoretical contributions, the dissertation adds to the theory of sourcing the full set of selection criteria for the selection phase comprising Quality, Cost, Delivery, Service, Capability, Company’s image, Relationship, and Sourcing country. These criteria can be applied for the whole T&A industry ranging from CMT to OBM production method, from spinning companies to dying, weaving, and apparel companies. In terms of methodological contribution, the dissertation provides a detailed research model in which both qualitative and quantitative methods are applied, especially the use of ANP method can help close the gap of solving interrelations among criteria and sub-criteria in T&A industry. In addition to academic contributions, the dissertation also brings about administrative implications.

The set of supplier selection criteria is a guideline for both T&A companies and T&A suppliers in their business. T&A companies can select capable suppliers for their production, which then minimize costs due to disruption, or uncontrollable risks. With the supplier selection model suggested by the dissertation, sourcing managers will no longer base on their intuition to select suppliers and can evaluate their suppliers frequently, which then can tighten the relationship with suppliers through their timely performance feedback to selected suppliers. For T&A suppliers, they can perfect themselves to meet T&A companies’ requirements, narrow the gap between them and high-ranked suppliers.

For policy makers, they can help domestic auxiliary companies improve their capabilities and compete with foreign suppliers by publicizing xiii the supplier selection model and providing financial incentives as material price is the most attentive criterion of T&A companies. Although the dissertation provides a helpful decision-making model, it also faces some limitations. Firstly, the sample size for quantitative approach is quite low. Secondly, variation tools for the proposed model are encouraged because the selection of suppliers is a complicated process.

Thirdly, it would be an impressive research to apply the model into other industries. xiv CHAPTER 1: INTRODUCTION TO THE THESIS 1. Introduction The first chapter presents the overview of the dissertation including the problem statement, from which objectives of the research and methodologies were raised. In addition, the chapter also presents the significance and structure of the dissertation.

Problem statement The Vietnamese textile and apparel (T&A) industry originated in the late 1950s in the north and in 1970 in the south with the construction of some large factories by the French in Nam Dinh, Hai Phong, and Hanoi (Manpower, 2015).