FMECA-based approach for vendor rating: Benefits, limits and future perspectives

Over the last decades, the capability to establish logistic partnerships has proven to be a key element of success and consequently, vendor rating has become a topic of great importance, both from a practical and academic point of view. This paper belongs to this stream of research and rethinks failure mode effect and criticality analysis (FMECA) as a quantitative framework for vendor rating. The rationale behind this choice can be traced in the high reputation of FMECA and in the key role played by 'suppliers' reliability' in the achievement of outstanding management results. Aiming to develop a rigorous, yet easy to use framework, the structure of the standard FMECA has been kept almost unchanged, limiting modifications to the main criticality criteria which have been properly contextualised and redefined. A relevant industrial case is finally presented; obtained results are discussed, both from a managerial and operating point of view.