A methodology for analyzing shipyard supply chains and supplier selection

Purpose – The purpose of this paper is to focus on shipyard supply chains in order to identify the processes that take place and evaluate the risks associated with suppliers. Design/methodology/approach – For this analysis two methodologies are applied. The first is the understand, document, simplify, optimize, where the first two steps are used for analysing the processes and the documentation of the best practices, which take place in the daily operations. The second tool is Kraljic’s matrix, which is applied for the identification of supplier selection and associated risks. Findings – The analysis shows that strategic co-operations between shipyards suppliers are essential for improved supply chain performance since supplier improvement in terms of lead times and product quality are achieved. It is also seen that the shipyard supply chain performance can be improved by adjusting the best practices to the needs dictated each time by the project’s specifications. Practical implications – The findings provide valuable insights for practitioners, as well as academicians, policy makers and also integrate supplier selection under the supply chain. Managers can acquire reliable information about those suppliers who exhibit best practice. Originality/value – A number of key processes and best practices have been identified, which are essential for the upstream and downstream coordination of the shipyard supply chain. The present work is an approach to evaluating the risks associated with the shipyard’s suppliers and assists in benchmarking their risk profile.