Assessment of Product or Supplier Performance
The first step in applying the multiattribute model is to objectively rate how well each
characteristic of the competing products or suppliers meets the buyers’ needs. Let us
use the example of General Motors (GM) evaluating adhesives for use in manufacturing.
The buyers have narrowed the alternatives to products proposed by three suppliers:
BondIt #302, AdCo #45, and StikFast #217. As illustrated in Exhibit 3.3,
the GM buying team has assessed the competitive products according to how well
they perform on certain important attributes. These assessments are converted to
scores as depicted in Exhibit 3.4, with scores ranging from 1 (very poor performance)
to 10 (excellent performance).