Vendor Selection Preference Matrix

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Design a Preference Matrix for an Organisation in which you are familiar with, and explain how it is going to measure the productivity of the Organisation.

Solution:
Below is a preference matrix to enable the Public Sector of Mauritius to select the best supplier. Suppliers will be rated on how well they meet each critical factor, and the cost of the eligible goods/services will be the one weighted most heavily. However, the weight may vary, depending on the type of goods/ services purchased or projects.

Critical factors| Weight(%)| Suppliers|
| | A| B| C|
Cost| 35| (Weight * Ratings)| | |
Quality of service| 20| | | |
Experience in similar fields| 10| | | |
warranty| 5| | | |
Compliance with requirements| 30| | | |
TOTAL| 100| | | |

Ratings:
Critical factors| Ratings|
| 1| 2| 3|
Cost| Cost is much more than expected| Cost is a little higher than expected| Cost is either the same as expected or lower| Quality of service| Low| Average| High|
Experience in similar fields| It has done projects/supplied goods quite similar as requested| It has at least done one projects/supplied goods very similar as requested| It has done projects/ supplied goods very similar several times| warranty| Less than 1 year| (1-3) years| More than 3 years| Compliance with requirements| It meets only a minimum of requirements at highest priority| It meets all high priority and most second tier requirements| It meets all stated requirements at all levels of priority|

The design preference matrix will help the Public sector increases its productivity level as selection of the competent suppliers is regarded as one of the most important task of the purchasing and supply department. The purchases from outside vendor account for a large percentage of its total operating costs.

Productivity= outputinput
Or
output/(labour+capital+…)

The aim of the Organisation is to improve the ratio...
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