Approaches to Supplier Selection Process - Research Proposal Example

The knowledge was restricted from moving out of one’s own control. This was done by restricting education for foreign students and minimizing the disciplines of certain fields of science; that is when we talk about a national approach. The second method was nationalizing companies that dealt with technology. When the government-controlled these companies it automatically meant that their policies could be controlled. These government-controlled companies had few innovations and were bureaucratic structures that had the aim of producing everything in-house.

The evolution of the business environment has had an impact on many different aspects of doing business. One of the most major impacts has been on supply chains and assembly lines of a manufacturing and service business (Ballow, 1999). This is because the phenomenon of outsourcing has totally changed the landscape (Ballow, 1999). The resource allocation in organizations has greatly changed with the introduction of outsourcing. Not long ago major of every organization's resources were used in fixed assets.

This reduced room for improvement. This was because once fixed expenditure was made; innovating meant spending more on fixed assets (Ballow, 1999). For example, if a company introduced too many changes in the model, each time some of its fixed assets became obsolete and it had to make new fixed expenditures. The recent increase in product ranges and continuous model upgrades has only been possible due to the innovation in supply chain management (Ballow, 1999). The companies in this strategy buy parts from different vendors.

These smaller components can then be assembled to form the final product (Ballow, 1999). The product upgrade and new model usually need a change of a few components only. The service vendor companies, on the other hand, can provide outsourcing for many services that a company needs (Ballow, 1999). 

Network providers usually outsource many different aspects of their service such as bandwidth, maintenance, after-sale services, etc (Raisanen, 2003).

How a new trend has emerged. The vendor relationship has progressed and has gotten even more complicated. The increase in a number of products being offered by a single manufacturer has made it impossible for companies to rely on a single vendor. The vendor also finds it impossible to satisfy the needs of diversity each company has in the new diverse environment (Raisanen, 2003).