In the case of domestic ports, including Busan Port, ship supplies in Korea is lack of the competitiveness compared to Singapore and China due to complex distribution processes. Despite having an environment with an excellent geographical location and foundation for maritime-related industries, they are having difficulties gaining competitive advantages.
In order to activate the ship supply business, there is a need to induce superior maritime supply companies, strengthen price competitiveness through direct purchasing and a sales expansion for the vessels in Korea, as well as an aggressive marketing strategy through overseas market exploitation and global networks.
Such procurement strategy is determined by the needs of customers in the market Therefore the ship supplier in each company needs to competitively and accurately identify the purchasing decisions of the customer.
In this study, the five main factors that were chosen to be considered for ship suppliers' selection include price-related factors, quality-related factors, factors related to financial resources, factors related to service performance, and image-related factors. For the specific details, two to four factors from the key factors were selected and composed with a total of fifteen sub-factors.
In order to analyse with AHP, ship suppliers' selection was divided into three stages. The questionnaire survey was also conducted for relative comparison. AHP analysis results of the survey found that price-related factors were the most important, followed by the quality-related factors, factors related to service performance, factors related to financial resources, and image-related factors.
According to the analysis results of the two-stage lower selection factors, cost and price competitiveness are the most important factors among the price-related factors. Quality level, error rate, product awareness and product diversity are evaluated as importance factors among the quality-related factors. The ability of the delivery process, the facility staff retention, and financial stability are considered to be important factors in financial resources related factor. Rapid delivery and accuracy, response capability, delivery fulfilling experience, and accessibility are ranked important factors in the service related factors. The industry`s awareness and the number of customers were found to be important factors in the image related factors.
In the study, every choice is not considered because of the limitations of AHP and the factors such as ingredients, and various accessories were not selected as rating factors.
However, this quantitative framework on ship suppliers' business will provide a competitive basis on marketing strategies for the ship company.
In the future research, it is necessary to complement the limitations and select a rating factor for selecting ship suppliers on each item. Also, research on alternative selection will be needed in order to verify selected rating criteria.