The company Engee has developed a mathematical model to optimize supplier selection. The algorithm is implemented in the Julia language and aims to replace manual selection processes that often lead to inefficient procurement.
The model evaluates suppliers based on three key criteria: the reduced procurement cost considering the minimum order quantity (MOQ), the delivery time, and an integral trust level calculated from ERP system data.
The system addresses common procurement errors, such as choosing the lowest unit price while ignoring large minimum order requirements, which can lead to frozen capital and increased real unit costs.