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Assume that you are the Chief Purchasing Officer (CPO) at Philips. 2022 was a difficult year for Philips as its business and financial performance suffered
Assume that you are the Chief Purchasing Officer (CPO) at Philips. 2022 was a difficult year for Philips as its business and financial performance suffered due to challenges in execution, quality and supply, and a complex operating model (Philips, 2023). Going forward, Philips is going to address these operational challenges, improve performance, and drive progressive value creation through 3 main strategies: a) Focused organic growth, b) Scalable patient- and people-centric innovation, and c) Focus on reliable execution, prioritizing patient safety and quality, supply chain reliability, and a simplified operating model. More information can be found from the company's website https://www.philips.com/a-w/about/our-strategy.html). Your CEO asked you to evaluate and rank your current suppliers based on these strategies. By using analytic hierarchy process (AHP), and simple additive weighting (SAW), discuss how you develop your supplier evaluation model. Your discussion should include: a) Developing four procurement strategies which align with the corporate strategies (at least 1 procurement strategy for each corporate strategy). [7 Marks] b) Identifying the appropriate KPIs based on procurement strategies identified in task a. You need to develop one evaluation category for each procurement strategy and identify two KPIs related to each evaluation category. [12 Marks] c) Applying AHP and SAW
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