Business Process for the Selection of the Raw Materials’ Supplier on the Example of the Company "Yuzhtehmontazh"

Abstract

"Yuzhtehmontazh" is a small-sized operational company specializing on the production of the customized metal frameworks. Currently, the operations are unprofitable due to the high supply costs for the purchase of the main raw material (rolled metal). Consequently, the goal of the current research is to find the ways for the improvement of the supply process. The cost estimation methodology for the suppliers' choice is used and the logic of the Balanced Scorecard system is being applied. As the result, the identified flaws in the current supply process are to be battled with the help of the elaborated analytical optimization tool, bringing the minimum of the supply costs, and the scorecard helping to align the optimization measures with the long-term profitability of the company.