An importance-performance analysis for supplier assessment in foreign-aid funded procurement

Abstract

Purpose – Using a sample of executing agency executives, donor agency executives and supplying organisation executives, this study aims to identify the critical criteria for the assessment of suppliers in foreign-aid funded procurement in Bangladesh. Design/methodology/approach – An instrument with 32-seven-point (1 – rarely, 7 – mostly) Likert-scaled items was employed to gather data on the level of importance assigned by both buyers and suppliers on each supplier assessment criterion. The importance-performance matrix analysis was conducted to assess the gap in expectations between buyers and suppliers and to organise the assessment criteria into four categories such as “low priority”, “possible killer”, “concentrate here”, and “keep up the good work”. Findings – The results indicate that, to provide better service, suppliers must assign tasks to the knowledgeable sales personnel, provide better warranties with well-known branded products, and ensure a reliable level of quality. The supplier organisations should implement a high calibre management system that allows prompt responses to enquiries and the provision of services without buyers having to follow up. Practical implications – With careful considerations, the methodology and results of the study could be adapted to design supplier assessment procedure in other developing countries. Originality/value – This research employs a simple and practical method which purchasing executives will find easy to apply and interpret the findings.