Six Basic Stages Of Supplier Selection & Multi Weighted Model For MFB

There are too many factors of supplier selection, which are Brand name, consistency, cost, Loyalty, Quality and after sale services.

Six Basic Stages Of Supplier Selection:

There are too many factors on which companies uses for supplier selection. but we will discuss only important factors which are Brand name, consistency, cost, Loyalty, Quality and after sale services. Now a days, companies has adopted outsourcing strategy to make their business process faster and to produce quality products or services. The outsourcing is named as procurement function too. One of the major aspects of purchasing function is supplier selection.

Brand name:

Brand name plays the vital role in the development of the image of a company and tells us about the reputation on that company in the market. When we are going for supplier selection of natural gas for MFB two thing are very important, first is it a reputable firm in providing natural gas in the provide feedback of clients. Second, do they hold strong values based on the core of its mission statement. It is necessary to make sure either you are going to work with a company that demonstrate integrity and are they reliable.


We can have this information on the based on historical data as well as the buyer’s feedback from their websites etc. The time span of their firm into the market as natural gas supplier selection also indicates its brands repute. If they are working from multiple decades, it indicates that its competitiveness in market and its business credibility. The natural gas market in Australia is extremely volatile on the basis of past data about pricing due to the frequently changes in the regulatory bodies. Supplier selection cost structure is very important because you will have to select that supplier who will provide you a competitive cost rate plan from its competitors due to uncertainty of the market.

Supplier selection Cost:

Sometime when regulatory laws or prices changes the contractors companies will have to breach their contracts to avoid the monetary risks. That is why company reputes the most important role in selecting a supplier. Natural gas supplier selection must have a good profile regarding customer service and responsiveness because it is the most important for the client’s company to run their process smoothly. Sometime a little bit issue or concern leads to a major problem which took a reasonable time to be done. If such things happened the client’s company will have to face the issues to meet their daily routine and deadlines.


Quality plays the most important role to create a good company images in the field of natural gas because quality is based on the pressure of gas provided. This is all due to the requirement of manufacturer to maintain the temperature of their equipment. Consistency in the supply will leads to create loyalty of that customer.

Supplier Selection Multi Weighted Scoring Model:

There are different techniques to analyze above mentioned factors which are important for companies but the most effective model is the multi- weighted scoring model. This model gives us the deep insight how we can select a most appropriate supplier based on our requirements. For multi weighted scoring model you must have to important factors along with its weighted according to your demand and existing suppliers in this filed i.e. supplier of natural gas in Australia.


Selection Criteria Brand Consistency Cost Loyalty Quality Total weight
Weight 0.20 .20 .20 .20 .20 1.00
AGL 4 4 4 5 5 4.4
Dodo power & gas 5 5 5 5 4 4.8
Energy Australia 5 5 4 4 5 4.6
Lumo Energy 3 4 4 5 5 4.00
Origin Energy 4 5 4 3 2 3.80

Multi Weighted Scoring Model Description:

In the case of MFB, let’s suppose the five important factors brand, consistency, cost, loyalty and quality. These factors are essential for MFB to select the right supplier of natural gas. Let’s assign each factor a weight of 0.20 from total of 1.00 weight according to the requirement of MFB. Chose a list of natural gas supplier and assign them a ranking from the digit 1 to number 5. Number 1 is the lowest ranking while no. 5 is the highest ranking. To find out total weight of a company based on each factor performance multiply the company ranking with the weight assign to the factor of selection.

After multiplying the each factor with weight sum up the entire factor, this will be the total weight of a company according to your requirement. The company will higher total weight will be suitable for MFB to make a contract of natural gas to heat their oven. Keep in mind that all of these value are based on assumption, a buyer company will give ranking on the bases on past experience or research data analytics. On the basis on assumed values the Dodo power & gas is the suitable supplier of natural gas with the highest total weight.

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