Question
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:
Applying AHP and SAW methods to calculate the final score based on the collected data for suppliers. To calculate weights for each category and related KPIs via AHP, Regarding the collected data for suppliers, you can use hypothetical data for your own identified KPIs.
Sheet 1: Scale of relative importance Intensity of importance Definition 1 Equal importance 3 Weak importance 5 Strong importance 7 Demonstrated importance 9 Absolute importance Sheet 2: Comparison matrix for category category 1 category 2 ategory 3 category 4 category 1 Strong importance Absolute importance Absolute importance category 2 Strong importance Demonstrated importance category 3 category 4 Strong importance Sheet 3: Comparison matrix for KPIs Category 1 KPI1 in Category 1 KP12 in Category 1 KPI1 in Category 1 Strong importanceStep by Step Solution
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