Evaluating key factors in supplier selection for micro-businesses: implications for buyer satisfaction

Final quality of products/services starts with suppliers in the supply chain. Problems can occur if suppliers do not deliver the quantities requested in full, on time, or buyers select suppliers solely on the basis of lowest price. Supplier selection has been studied for large businesses but not for very small (micro) businesses. Therefore, a survey was administered to micro-businesses to determine: what factors are important to micro-businesses in selecting suppliers and how satisfied they are with their suppliers. Factors included Brand Name, Consistency, Cost/Lower Price, Loyalty, Quality, and Warranty. Results indicated that none of the factors were unimportant. However, buyer satisfaction was found to be dependent on Quality, Brand Name, and the Length of Time of the Buyer/Supplier Relationship. Additionally, it was concluded that quality, along with complete, on-time delivery are key to buyer satisfaction and may help suppliers achieve preferred status with microbusiness buyers.