Development of a Supplier Selection Model for Maintenance Department of a Thai Petrochemical Firm

The purpose of this research is to establish a supplier selection model for maintenance operations in the petrochemical industry in Thailand. The research identifies six factors that could be relevant to supplier selection success, including cost, quality, time, reliability, flexibility, and human resources. A survey was conducted of experts in maintenance supplier management in one of Thailand's large petrochemical firms (n = 113). Results were tested using confirmatory factor analysis (CFA) and structural equation modeling (SEM). The findings showed that there were significant effects of cost, quality, flexibility, and human resources on the supplier selection success. However, factors including time and reliability were not significant. The implication of this research is that cost, quality, flexibility and human resources should be used to select appropriate suppliers in petrochemical maintenance operations. Limitations and opportunities for further research are also discussed for the findings