Supplier Evaluation and Selection Process for Public Procurement in the Swedish Electricity Industry 

Abstract: Rapidly changing business environment, increasing and fluctuating customer demand, the recent development and employment of technology are crucial reasons for companies to strive for better quality, shorter lead time and lower costs. The supplier evaluation and selection process is an increasingly important activity in the supply chain in order to enhance the company’s competitiveness by reducing the costs and simultaneously maintaining the same quality of products. The focus of this thesis is on the supplier evaluation and selection process for public procurement in Swedish electricity industry. Specifically, the work combines the literature and the empirical findings gathered from the case company Växjö Energy (VEAB) to develop a supplier evaluation and selection process for the public procurement in Swedish electricity industry. It was concluded that the supplier evaluation and selection process for public procurement has basically four steps. The steps are 1. Identifying the needs and the sourcing method; 2. Setting the pre-requirements; 3. Supplier evaluation and 4. Supplier selection. In addition, the developed supplier evaluation tool innovatively combines the advantages of the value-added model with the advantages of AHP model. Moreover, this developed supplier evaluation and selection process would help the public procurement departments in Swedish electricity industry to improve their current practices in selecting the suppliers by highlighting the important steps and developing the evaluation model in a way that enhance its credibility to provide a more precise and reliable results.