Best Practice Toolkit Evaluation matrix user guide BPI Best Procurement Implementation.

Best Practice ToolkitEvaluation matrix user guide

BPIBest Procurement Implementation

2

Contents

•Engage the Commodity Team

•Components of the evaluation matrix

•Weights

•Sub-Weights

•Evaluating the ability to supply a national contract

•Evaluating the total cost of supply

•Scoring and benchmarking the suppliers

•The evaluation matrix as a worksheet in excel

Microsoft Excel Worksheet

3

Engage the Commodity TeamEVALUATION CRITERIA - DDRRAAFFTT

SPECIFICATION

EXAMPLE

EXAMPLES OF MEASUREMENT

PRICE ?Total cost of Acquisition ?The delivered price quoted by a supplier in relation to the lowest delivered price by any supplier

?Cost structure break-down through open book costing ?Benchmarking

DELIVERY ?order to receipt lead time ?Flexibility (changing delivery schedules and methods) ?Packaging ( bar-coding/delivery notes/ invoicing)

?Benchmark meets NHSS requirements ?Benchmark on Turn-around time to meet varying Health Board delivery requirements ?Capability to meet NHSS requirements

QUALITY ?Fitness for purpose ?Conformance ?Returns ?Customer Complaints ?Accreditation ?Environmental ?Sustainability

?Past performance ?Certificate

AFTER-SALES ?Investment and absorption of non-recurring costs (e.g. implementation costs) ?Customer service ?Account management

?Open-book costing ?Benchmarking ?Past performance records ?References from other customers ?NHSS proposal - Business plan and organisation structure (including implementation and management information)

•The evaluation criteria was agreed at a meeting with all Commodity Team

•Introduce the decision matrix concept

Stre

ngth

/Pro

tect

ion

Dur

abili

ty

Fit/c

omfo

rt

Sens

itivi

ty

Grip

/dex

terit

y

Ease

of d

onni

ng

Tota

l

Ran

k

Wei

ght

%

Strength/Protection 1 1 -1 1 1 3 1 8 27%Durability -1 1 1 -1 1 1 2 6 20%

Fit/comfort -1 -1 1 1 -1 -1 4 4 13%Sensitivity 1 -1 -1 1 1 1 2 6 20%

Grip/dexterity -1 1 -1 -1 1 -1 4 4 13%Ease of donning -1 -1 1 -1 -1 -3 6 2 7%

30 100%

4

The components in the evaluation Matrix

7 KEY components in the evaluation matrix

After-Sales

Delivery

Costing

Structure

Quality

Commercial

5

Components of the evaluation matrix defined

Quality

After-sales

Costing Structure

Delivery

Commercial

Ability to supply a national contract

Price

Total Quality Management System. This includes past performance data on achieving an ave of 85% one day replacement turnaround/ complaints/ replacement and rejected goods process, certification and customer quality awards.

The complete service offering. This includes dedicated staff/customer satisfaction/perf mgt and uptake reporting/process improvements and cost reductions /Core & non-core list.

Ability to assess the suppliers total cost model. This includes open book costing and price fixing.

On time delivery and flexibility. This includes turnaround times/ the suppliers ability to meet unscheduled requests/past performance data on achieving 85% or more on-time deliveries and delivery point improvements.

Commercial viability. This includes the effectiveness of the implementation plans/board level support network/ financial stability and the level of the organisation’s influence over the supplier (For example, negotiating power).

The ability of the supplier to supply to all delivery points in the preferred delivery option.

The total price tendered including all discounts and additional costs.

PERFORMANCE

6

How the evaluation matrix uses weighting

Input Data

ABILITY TO SUPPLY A NATIONAL CONTRACT PRICE TOTAL SCORE

After-Sales QualityCosting Structure Delivery Commercial

Ability to Supply to all Delivery Points

Pricing with flexible delivery periods

Total Value of Supply

Weight 10.00 5.00 10.00 5.00 10.00 20.00 40.00 100.00Supplier A 5.63 0.80 2.00 0.38 1.27 13.33 38.79 62.19Supplier B

Supplier C

PERFORMANCE

All calculations in the evaluation matrix have been automated.

The next stage is to find the

weight for each component in the evaluation matrix

The sub-weights will be included in the score for each performance criteria. Sub-weights will be applied to each tender question and summed into a total %

7

Each Team contributes to finding the weight

Is after-sales service more important than quality?Is after-sales service more important than the costing structure?Is after-sales service more important than delivery?Is after-sales service more important than commercial aspects?

Is after-sales service more important than the ability to supply to all delivery points?Is after-sales service more important than price?Is quality more important than costing structure?Is quality more important than delivery?Is quality more important than commercial aspects?

Is quality more important than the ability to supply to all delivery points?Is quality more important than price?Is the costing structure more important than delivery?Is costing structure more important than commercial aspects?

Is costing structure more important than the ability to supply to all delivery points?

Is the costing structure more important than price?Is delivery more important than the commercial aspects?

Is the critieria BELOW more important than the criteria on the right?

Afte

r-sa

les

Qua

lity

Cos

ting

Stru

ctur

e

Del

iver

y

Com

mer

cial

Abi

lity

to s

uppl

y to

de

liver

y po

ints

Pric

e

Tota

l

Ran

k

Wei

ght

Wei

ght

%

After-sales -1 -1 -1 1 -1 -1 -4 6 2 5%Quality 1 1 1 1 -1 -1 2 3 8 19%

Costing Structure 1 -1 -1 -1 -1 -1 -4 6 2 5%Delivery 1 -1 1 1 1 1 3 2 9 21%

Commercial -1 -1 1 -1 1 -1 -1 5 5 12%Ability to supply to delivery points 1 1 1 -1 -1 -1 1 4 7 16%

Price 1 1 1 -1 1 1 4 1 10 23%43 100%

Commodity Team asked to answer ‘Yes’ or ‘No’ on what criteria is more important than another

In the decision matrix:

‘Yes’ replaced by 1, ‘No’ replaced by -1

Specific questions have been designed to derive the opinion of each Team member concerning the level of importance for each criteria

8

Calculate the weight from the Commodity Team responses

Is the critieria BELOW more important than the criteria on the right?

Afte

r-s

ale

s

Qu

ali

ty

Co

stin

g S

tru

ctu

re

De

liv

ery

Co

mm

erc

ial

Ab

ilit

y t

o s

up

ply

to

de

liv

ery

po

ints

Pric

e

To

ta

l

Ra

nk

We

igh

t

We

igh

t

%

After-sales -1 -1 -1 1 -1 -1 -4 6 2 5%Quality 1 1 1 1 -1 -1 2 3 8 19%

Costing Structure 1 -1 -1 -1 -1 -1 -4 6 2 5%Delivery 1 -1 1 1 1 1 3 2 9 21%

Commercial -1 -1 1 -1 1 -1 -1 5 5 12%Ability to supply to delivery points 1 1 1 -1 -1 -1 1 4 7 16%

Price 1 1 1 -1 1 1 4 1 10 23%43 100%

Total for each criteria

Enter the Team responses as a 1 or -1 into the decision matrix which will automatically calculate the total/Rank/Weight/Weight %

= Weight for each criteria

Sum of all the negative numbers in the total column-

EVALUATION CRITERIA - DRAFTDRAFTSTEP 1

STEP 2 STEP 3

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Each Commodity Team member contributes to finding the sub-weights Each Team member rates

each topic between 1 – 3, (3 is critically important, 2 is important and 1 is nice to have)

fx = (AVERAGE)

●Find the average of all Team member responses

=Sub-weight for each tender question (the importance of each tender question)

STEP 1 STEP 2

STEP 3

3.00333

Level of the organisation's Negotiating power with supplier

2.67233Dedicated account manager

3.00333Agreement to price fixing

3.00333

Sales and technical support through the life cycle of the contract

Average

Organisation C

OrganisationB

OrganisationA

3.00333

Level of the organisation's Negotiating power with supplier

2.67233Dedicated account manager

3.00333Agreement to price fixing

3.00333

Sales and technical support through the life cycle of the contract

Average

Organisation C

OrganisationB

OrganisationA

10

Each sub-weight will place a level of importance against each tender question

Tender

Tender Yes = 1

No = 0 xSub –

Weight =

Step 1 Step 2 Step 3

Score for

Each

tender queQue

1.331.331yesAt least 1 staff should be dedicatedIs the number of dedicated staff substantial enough for the contract?

2.332.331yesWill there be dedicated staff?

3.003.001yes

Has the supplier mentioned technical support, customer service support, implementation support, the reporting and planning for regular reviews both internally and externally?

Tenderers are asked to provide details of the sales and technical support that will be available to the organisation during the life cycle of the contract.

Calculation Sub-

Weight

Yes = 1 No = 0

Yes/NoEvaluating The Suppliers ResponseTender Question

1.331.331yesAt least 1 staff should be dedicatedIs the number of dedicated staff substantial enough for the contract?

2.332.331yesWill there be dedicated staff?

3.003.001yes


Tenderers are asked to provide details of the sales and technical support that will be available to the organisation during the life cycle of the contract.

Calculation Sub-

Weight

Yes = 1 No = 0

Yes/NoEvaluating The Suppliers ResponseTender Question

11

Calculate the total score for each criteria

All steps are automatic.

Sum the total scoreSTEP 1

STEP 2

STEP 3

Calculate as a

percentage

Enter the criteria specific percentage into the evaluation matrix

Evaluating The Suppliers Response Yes/NoYes = 1 No = 0

Sub-Weight

Calculation


yes 1 1.83 1.83

no 0 1.00 0.00

At least 2 staff should be dedicated yes1 2.56

2.56

Total Score for After-sales 7.68 4.39

57.15%


Weight 10.00 5.00 10.00 5.00 10.00

Supplier A 5.71 3.00 1.13 7.30 3.21

PERFORMANCE

}

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Calculation of weights and sub-weights have been automated

Enter Data

Arg

yll A

nd

Cly

de

Ayrs

hir

e a

nd

Arr

an

Blo

od

Tra

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sio

n

Se

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Bo

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rs

Du

mfr

ies a

nd

Ga

llo

wa

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Fife

Fo

rth

Va

lle

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Gra

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ian

Gla

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ow

Hig

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Lo

thia

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Ork

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Sh

etla

nd

Ta

ysid

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Sta

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osp

ita

l

SA

S

We

ste

rn I

sle

s

Is after-sales service more important than quality? NO YES NO YES NO NO NO NO NO NO NO NO NO NO NO NO NOIs after-sales service more important than the costing structure?Is after-sales service more important than delivery?Is after-sales service more important than commercial aspects?Is after-sales service more important than the ability to supply to all delivery points?Is after-sales service more important than price?Is quality more important than costing structure?Is quality more important than delivery?Is quality more important than commercial aspects?Is quality more important than the ability to supply to all delivery points?

Arg

yll

An

d C

lyd

e

Ayrs

hire

an

d A

rra

n

Blo

od

Tra

nsfu

sio

n S

erv

ice

Bo

rde

rs

Du

mfr

ies a

nd G

allo

wa

y

Fife

Fo

rth V

alle

y

Gra

mp

ian

Gla

sg

ow

Hig

hla

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La

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Lo

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Ork

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Sh

etla

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Ta

ysid

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Sta

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osp

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SA

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Avera

ge

AFTER-SALESSales and technical support through the life cycle of the contract 2 1 3 3 2 1 1 1 1 3 2 2 2 2 2 1 3 2Is there dedicated staff ##More than 2 dedicated staff ##Dedicated account manager ##Single point of contact ##Professional level of the single point of contact ##

WEIGHT

SUB-WEIGHT

Just type ‘Yes’ or No’ respectively for each participating organisation in the yellow shaded boxes

Just type the exact rating that each Commodity Team Member has advised in the yellow shaded boxes

After-sales

Qu

ality

Co

stin

g S

tru

ctu

re

Delivery

Co

mm

ercial

Ab

ility to

su

pp

ly to

delivery p

oin

ts

Price

To

ta

l

Ra

nk

We

ig

ht

We

ig

ht %

1 1 1 1 1 1 6 1 12 28%-1 1 1 1 -1 -1 0 4 6 14%-1 -1 -1 -1 -1 -1 -6 7 0 0%-1 -1 1 1 1 1 1 3 7 16%-1 -1 1 -1 1 -1 -1 5 5 12%-1 1 1 -1 -1 -1 -1 5 5 12%-1 1 1 -1 1 1 2 2 8 19%

43 100%

3 spreadsheets will automatically calculate the weight and sub-weight data

&

13

Measuring the ability to supply a national contract

All calculations in the evaluation matrix have been automated. All calculations in the evaluation matrix have been automated.

\


Suppliers answer ‘Yes’ or ‘No’ on their ability to deliver to each delivery point

Yes =1

No =0

The spreadsheet will calculate the total score:

Total Score

Max Score

= Sliding Rating

The sliding rating system awards each supplier a score relative to their ability to meet the delivery requirements.

X 100

National Delivery Points

Organisation A

Organisation B

Organisation C

Organisation D

Organisation E

Score for all commodities

Total for all Geographies

Maximum Score

Score for all Geographies

All delivery points yes yes yes no NO 4 18 22.22

All delivery options YES YES YES YES YES 13 18 72.22

Stationary yes NO NO NO NO 1 18 5.56

Computer Consumables yes NO YES YES NO 14 18 77.78

Small Electronic Office Equipment YES YES YES YES YES 18 18 100.00

Total 5 3 4 3 2 50 50 90 55.56%

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Measuring the total cost of supply

ENTER DATA

24 Hours (Normal Delivery Period) 48 Hours 72 Hours

24 Hr Scoring

48 Hr Scoring

72 Hr Scoring Total Score

Percentage Score

Lowest Cost £10,000.00 £12,000.00 £6,000.00Supplier A £11,000.00 £12,000.00 £6,000.00 91 100 100 291 97.0%Supplier B £11,000.00 £13,000.00 £6,000.00 91 92 100 283 94.4%Supplier C £12,000.00 £25,000.00 £9,000.00 83 48 67 198 66.0%

The sliding rating system awards each supplier a score relative to the lowest cost. The lower the cost, the higher the score.

\


Enter the total cost (including all discounts/charges) for the each turnaround time

Enter the total amount of the lowest cost supplier

The spreadsheet will calculate the % scoring: Lowest Cost

Supplier Cost

=Sliding Rating

Sum and find % total score for each supplier

Step 4

X 100

15

Score and benchmark each supplier

All calculations in the evaluation matrix have been automated.

The total score is the sum of all the 7 evaluation components

Benchmark the tender score by ranking each supplier

Input Data

ABILITY TO SUPPLY A NATIONAL CONTRACT PRICE TOTAL SCORE


Ability to Supply to all Delivery Points

Pricing with flexible delivery periods

Total Value of Supply RANKING

Weight 10.00 5.00 10.00 5.00 10.00 20.00 40.00 100.00Supplier A 5.71 3.00 1.13 7.30 3.21 13.33 38.79 72.48 1

PERFORMANCE

Best Practice Toolkit Evaluation matrix user guide BPI Best Procurement Implementation.

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Transcript of Best Practice Toolkit Evaluation matrix user guide BPI Best Procurement Implementation.