Supplier selection problem of small-medium enterprises in apparel sector in indonesia using multi-criteria decision making techniques

Indonesia’s economic growth as reflected in the country’s Gross Domestic Product (GDP) contributed by various aspects of Industry, the Apparel and Textile Industry is no exception. The role of Small and Medium Enterprises (SME) in Indonesia also gives a huge impact on Indonesia’s Gross Domestic Product with a contribution of 57.8% in 2018. Since the Small and Medium Enterprises in the Apparel sector are predicted to have a significant role in the future of Indonesia’s economic growth, its business strategy needs to be improved. Small and Medium Enterprises supplier selection is one of the supply chain stages that crucial to its business but only a few Apparel Small and Medium Enterprises have a formal supplier criteria reference to be followed. To address this, the paper conducted a survey among experts in Apparel Small and Medium Enterprises in Indonesia through Delphi questionnaires to get the criteria that used in supplier selection decision making. Then the Analytical Hierarchy Process will be used to get the importance rank of the proposed criteria. This study could help decision-makers in Fashion Small and Medium Enterprises to choose the supplier wisely to get better performance for their business strategy.