Academic Thesis for Master's Degree

Field: Business Management Major: Domestic Business

Abstract

The experts and researchers believe that performance evaluation is the main issue in all organizational analysis and it seems practically impossible to imagine an organization that does not include performance evaluation and measurement. Today, purchasing and supply management is increasingly important in operational and financial performance. Increasing competitive pressures around the world are forcing companies to look for reliable and low-cost purchases. Since the preparation and development of suitable indicators for performance measurement has a significant role in the evaluation method and in achieving the goals, the data coverage analysis model can be fruitful as one of the most well-known methods for measuring the efficiency and performance evaluation of organizations. In this regard, the current research was conducted with the aim of evaluating the performance of supply and purchase management, using the DEA approach and as a case study in Saipa dealerships. In this regard, the study of research literature on performance evaluation, supply and purchase and its management, as well as multi-indicator decision-making, has led to the identification and selection of the data coverage analysis technique, and in this regard, the model (Saranga and Moser, 2010) and its related indicators have been determined, and real data, checklists and interviews with relevant experts have been used to collect the necessary data to measure the variables. In this research, 14 dealerships were selected as a statistical sample and with two input variables (the number of strategic buyers and the number of suppliers) and two output variables (gross revenue and gross profit), the efficiency of supply and purchase management in each of them was compared to each other. The results of the research show that Anzali and Astana dealerships have the highest level of performance according to the amount of inputs and outputs determined in the model, and on the opposite point, Rasht and Siahkal dealerships have the lowest position.

Key words: performance evaluation, supply management, purchase management, data coverage analysis

Experts and researchers believe that performance evaluation is the main issue in all analyses. It is considered an organization and it seems practically impossible to imagine an organization that does not include performance evaluation and measurement. Because in today's competitive world, organizations must strive hard for their growth and sustainability and use the right strategy to progress and maintain their survival.

During the last two decades, managers have witnessed a period of tremendous global changes due to advancements in technology, globalization of markets and new conditions of political economy. With the increase in the number of competitors in the world class, organizations were forced to quickly improve an internal process in order to remain in the global competition scene (Faizabadi, 2012, p:1). The environment around organizations is changing rapidly, which includes the variety of demand and customer needs. Organizations do not exist in a vacuum. Every organization, be it large companies, public companies, or small businesses, wants to meet the demands of various customers and stakeholders. The customer's demand for high quality and fast service has increased pressures that did not exist before. In the existing competitive market, economic and production enterprises, in addition to dealing with the organization and internal resources, have found themselves in need of managing and monitoring related resources and elements outside the organization (Naqadeh et al., 2013, p.:1).

Another important limitation that has put organizations in a tight spot is the scarcity and limitation of resources and facilities. One of the ways to reduce these problems is the proper use of external suppliers and resources. Organizations and companies of the present time have realized this issue and its importance for a long time that in order to survive in the global competition and appear with a successful face, they need to bring certain factors such as the quality of the products and the quality of the executive and production processes of the organization to the desired and acceptable level in their structure and products. In this regard, in the first chapter of the research, the generalities of the research have been examined, including the statement of the problem, the importance and necessity of the research, the theoretical framework of the research, the research questions, the goals and the conceptual and operational definition of the research.

1-2 statement of the problem

According to the intensity of the current competition, companies are forced to respond quickly and accurately to the needs of customers in order to maintain and improve their success in their markets by satisfying them. In this situation, the role of suppliers and their related topics in supply chain management has become very important.

Today, purchasing and supply management is increasingly important in operational and financial performance. Increasing competitive pressures around the world are forcing companies to seek reliable, low-cost acquisitions and to cut costs to survive economic downturns through operational excellence. Today, one of the main parts of the expenses is spent on purchasing, which represents an average of 40-70% of the company's sales capacity, and therefore offers a large area for creating competitive advantages. Therefore, today's role of purchasing and supply management has changed from a mere office activity to a capability with the ability to build, develop and manage the supply base in line with the company's goals. In order to develop these capabilities, organizations follow the best practices in recruiting and training the workforce on supply and purchasing management (Saranga and Moser, 197:2010).

In recent years, many companies, with the aim of reducing costs, seek to find sources of raw materials and other supplies around the world, distribution channels and select and evaluate the performance of suitable suppliers among these channels according to The competitive environment of today's markets, especially in industrial markets, has caused the supply chain of industrial goods and the selection of suitable suppliers to be of particular importance. As a result, the role of supply and purchase management has significantly expanded and its impact on the performance of companies has received considerable attention from senior managers and academic studies (Ilram et al., 2002).

Since the preparation and compilation of suitable indicators to measure performance and the use of a suitable model in the evaluation method and in achieving the goals, the data coverage analysis model[1] As one of the most well-known methods of measuring the efficiency and performance evaluation of organizations, it can be fruitful and overcome the shortcomings of current performance evaluation methods. The data coverage analysis model can provide a comprehensive picture of the performance of organizations.

1-3 The Importance and Necessity of Research

Many contemporary innovators emphasize the role of performance evaluation in directing the attention and focus of managers to the long-term consequences of their decisions and actions by encouraging managers to pursue the effective implementation of strategy, informing the evaluations made and developing organizational capabilities. The information obtained from performance evaluation adds significant inputs to the set of possible management decisions and actions. Because performance evaluation is like a catalyst for identifying organizational problems and corrective measures in order to solve them as quickly as possible (Grifton et al., 692:2010). Technology is developing rapidly and every day a new product enters the market, consumers' tastes change and competitors' behavior is unpredictable. In such an environment, delivering the right product, at the right price and time to the consumer, is not only the most important factor for competitive success, but also plays a key role in the survival of the business entity (Agarwal et al., 2007). The increasing pressure of global competition forces companies to reduce costs in order to remain in the market. Today, one of the main cost elements is purchasing, which accounts for 40-70% of the company's sales volume on average, and they devote a very wide area to creating a competitive advantage (Saranga and Moser, 2010:197). Major companies have shown that achieving industry leadership is possible if they manage purchasing activities effectively and efficiently. As a result, purchasing and supply management is widely considered. The role of this unit is to transfer the activities that have been done and turn it into competence. To develop such capabilities, the organization seeks to develop best practices and develop systems to expand cooperation with suppliers (Bloom and Reinen, 2007).