Discover industrial customer selection criteria in food manufacturing industry: a case study of Rikevita (M) Sdn Bhd / Ainol Mardhiyah Rahmat

Modern era of business demands a stable and long lasting partnership with supply chain partners. A relationship is considered success in which mutual economic gain, understanding of industrial requirement and respect to each other exists. The role of the large scale manufacturing suppIier becomes more crucial in building relationship to its business client. However, supplier's role themselves would not able to stand alone if there is lack of mutual understandings from other partners which are industrial client. The food manufacturing industry in Malaysia plays a significant role in economy. In Malaysia, food sector account for 10% of manufacturing outputs which contributes to GDP growth. The use of qualitative methods is appropriate for this complex issue. This paper develops a framework that will effectively guide large manufacturer in selecting their business client especially market leader in respective industry to assure that careful selection were made to protect the exclusivity of the product as well as business reputation and credibility. The findings, derived from in depth interviews, demonstrate that manufacturers should focus on type of industry, business reputation, financial stability and previous relationship as an important criterion in identifying buyer-supplier relationships followed by additional factors that need to be considered which are size of industry and delivery of product.