While the weighted scoring model aids to assess and quantify a decision process such as this, some qualitative and subjective judgement can also be helpful. The final step in the process is to calculate the weighted scores by multiplying the weight for each criterion by its score and adding the resulting values.Īs seen here from the table, based on the combination of the raw scores for each criteria area and the relative importance of each criteria, Vendor C has the highest weighted score (9.1), followed by Vendor B (8.8), and Vendor A (8.5). Rated on a scale of 1-10, you score Vendor C as follows: Price: 8.5, Reputation: 9, Sustainability: 10.Īssembled as a table, the scores for each vendor are shown below. They are also very interested in sustainability and are able to meet your requirements in this area at 100%. Their proposal came in a little bit over budget, but still within an acceptable range. They have worked successfully with your company over the past 6 months on two projects and they also have a solid reputation in your industry. Vendor C is a newer service provider for your company. Rated on a scale of 1-10, you score Vendor B as follows: Price: 10, Reputation: 6, Sustainability: 10. They are able to meet all of your sustainability goals, however on past projects this vendor has had problems delivering services as agreed. The second vendor, Vendor B, also submits a proposal on budget. Rated on a scale of 1-10, you score Vendor A as follows: Price: 10, Reputation: 10, Sustainability: 5. However, this vendor does not meet your most of your sustainability goals and they don’t have any interest in changing their processes at this point in time. The first vendor (Vendor A) submits a proposal meeting the target price and has worked with your company for several years, always delivering on time, on budget, and meeting all agreed expectations. Step three in the process involves scoring all three vendors on each of the three criteria areas. With this information, the first two steps in the process would look something like this table below. 40% of the decision is based on price, 30% is based on reputation, and 30% based on sustainability. Altogether, you are looking at three criteria with different levels of importance – or weight – in making your decision. Additionally, your company is instituting new sustainability initiatives and so it is important that you are sourcing from vendors who can work in compliance with this new mandate. In making your selection, the price is important, but so is your past reputation with that vendor on other projects. Assume that for a particular project, you need to select between three potential vendors.
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