Work

Evaluation of Supplier Performance at PT. XYZ Using a Combined Method of Purchasing Portofolio Matrix (PPM) and Supplier Potential Matrix (SPM)

Year: 2025

Type: article

Abstract: The FMCG manufacturing industry faces complex challenges in the supply chain, where supplier performance evaluation is a crucial factor in maintaining production continuity. PT XYZ currently conducts supplier evaluations in a general manner without considering specific segmentation, making it less effective in identifying strategic suppliers and managing risks. The Purchasing portfolio matrix classifies raw materials into strategic, leverage, bottleneck and non-critical groups based on supply risk and profit impact. Meanwhile, the Supplier Potential Matrix (SPM) adds the dimensions of supplier capability and willingness in innovation and collaboration. The combination of these two methods can enhance the effectiveness of supplier evaluation, support procurement strategies, and ensure more optimal business relationships. The weighting of each criterion will be carried out using the Best-Worst Method. Next, the scoring process is conducted based on 13 agreed criteria for each evaluated supplier, totaling 148 suppliers. The results of data processing will be used for segmentation using a hybrid PPM-SPM model. Recommendations are provided for selecting the appropriate supplier relationship management strategy for each supplier segment.

Source: Jurnal Teknologi Terapan G-Tech

DOI: 10.70609/gtech.v9i2.6822

Authors: Satria Bagus Aji, Siti Rahayu, Tri Ngudi Wiyatno

Institution: Universitas Pelita Bangsa

Language: English

Topic: Quality and Supply Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $19