GUIDELINES FOR DECISION-MAKING IN SELECTING SUPPLIERS OF RAW MATERIALS FOR GEMS AND JEWELRY INDUSTRY IN THAILAND

Abstract

In today’s dynamic business environment, gems and jewelry entrepreneurs require the efficient supply chain management to remain competitive advantage in the market. The decision to select raw material suppliers is considered one of the main issues that entrepreneurs in the industry must thoroughly concern. Supplier selection for raw materials plays pivotal roles which directly impacting the cost, quality, productivity as well as future business performance. The aim of this research is to study guidelines for decision-making in selecting suppliers of raw materials for gems and jewelry industry in Thailand. This research employed a qualitative approach. Data was collected through in-depth interviews. Sixteen people were interviewed, including 1) ten entrepreneurs registered with the Department of Business Development of the Ministry of Commerce, 2) two committee members of Thai Gem and Jewelry Association,
3) two committee members of The Jeweller Association and 4) two committee members of The Gem and Jewelry Institute of Thailand. The findings of the research revealed that the factors must be considered when making the decision in selecting suppliers of raw materials for gems and jewelry industry in Thailand, including the quality of raw materials, the reliability and reputation of suppliers, good relationships between entrepreneurs and suppliers, price and value, standard practice and social responsibility, supplier sourcing ability to meet customer’s requirement, supplier flexibility in sourcing, after-sales service and support, financial status check of suppliers and continuous evaluation and improvement of supplier selection process. Following some guidelines will assist entrepreneurs to develop strategic decision effectively to accomplish sustainable supplier management, implement entrepreneurs’ performance as well as strengthen the gems and jewelry industry.