Download from "The Logistics and Supply Chain Toolkit" by Gwynne Richards and Susan Grinsted

DECISION MATRIX FOR MAJOR DECISIONS

How to use
1)     Identify the key criteria that will be used to compare the different options and give them a relative weighting fro
2)     Each option is allocated to a column in the decision matrix.
3)     Working across each row, score each option on a scale of 1 to 5 (where 5 is best) on how well it meets the criter
4)     Multiply the score awarded by the weighting to arrive at a sub-total for that criteria for that option.
5)     Add up all the sub totals for that option to arrive at a total score for the option. The option with the highest scor

When using this tool don’t assume that it is totally objective. Secondly if the scores are very close then further analysis should

Utilise a spreadsheet to compile the figures as this will enable you to change weights and scores very quickly and produce ov

Sheet one has an example od a decision matrix for a logistics outsourcing operation
nd give them a relative weighting from 1 to 5 (where 5 is most important. Each factor is allocated to a row in the decision matrix.

best) on how well it meets the criteria.

criteria for that option.
on. The option with the highest score is the most logical choice based on the scores and weightings allocated.

ery close then further analysis should take place.

scores very quickly and produce overall totals in a much faster time.
row in the decision matrix.
DECISION MATRIX

The weighting and scoring criteria were as follows:

Weighting
1- Fairly important
5 – Very important

3PL Decision Matrix

Decision Matrix Company A Company B

Service/Benefit Weight Score Total Score Total
Total cost 5 3 15 2.8 14
Purchasing power for outbound deliveries 5 3 15 2.3 11.5
On site pick and pack experience 4 2.5 10 1.8 7.2
Staff flexibility 4 4 16 3.8 15.2
System ability to deal with multiple clients 4 2.8 11.2 4.5 18
Management team we are comfortable working with 4 2.8 11.2 3.5 14
Dedicated senior contract management 3 3.5 10.5 2.8 8.4
End to end supply chain management capability 3 2.8 8.4 3.8 11.4
Proven WMS capability 3 4 12 3.8 11.4
Current use of scan technology within the warehouse 3 3.3 9.9 2.8 8.4
Pool of capable management talent 3 3.5 10.5 3 9
Capacity to expand 3 3.8 11.4 4.3 12.9
Proposed service levels 3 2.8 8.4 3.8 11.4
Suitability of space 3 2.8 8.4 4.5 13.5
Implementation costs 3 1 3 4 12
Payment terms 3 3 9 3 9
Southern European owned sites 2 3.5 7 2.3 4.6
Existing supplier/understanding of culture 2 2.3 4.6 4 8
Implementation time scale 2 3.8 7.6 3.5 7
Other customer synergy 2 3 6 3.3 6.6
Total score 195.1 213.5
Score
1 – Very Poor
3 – Average
5 - Excellent

Company C Company D Company E

Score Total Score Total Score Total
1.8 9 4.5 22.5 5 25
4.8 24 4.8 24 1.5 7.5
4.8 19.2 4.8 19.2 2.8 11.2
4.5 18 4.3 17.2 2.3 9.2
4 16 3.5 14 1.5 6
4 16 3.8 15.2 3.3 13.2
2.5 7.5 3.5 10.5 5 15
4 12 3.3 9.9 2.3 6.9
4.3 12.9 4.3 12.9 1.3 3.9
4.3 12.9 3.5 10.5 1 3
4 12 3.8 11.4 1.3 3.9
2.5 7.5 4 12 3 9
4 12 3.5 10.5 3.5 10.5
3.5 10.5 3.8 11.4 3 9
3 9 3.8 11.4 5 15
4.8 14.4 3 9 3 9
4.8 9.6 2.8 5.6 1.3 2.6
3 6 2.8 5.6 4.8 9.6
3.8 7.6 4.3 8.6 1.5 3
4.8 9.6 3.8 7.6 2 4
245.7 249 176.5