Supplier Selection in Global Value Chains

The critical starting point for achieving a collaborative value chain lies in the choice of partners. Typically, focal firms in the chain undertake various actions and strategies to select partners that possess an adequate set of competencies. The supplier selection process involves several steps: from initial problem definition, which requires understanding what the focal firm aims to achieve by selecting a supplier, to the formulation of criteria, the qualification of potential suppliers, and the final choice among qualified suppliers. This process must accommodate diverse situations in terms of complexity and importance.