Analysis of Vendor Performance Based on Vendor Performance Indicator (VPI) Through Analytical Hierarchy Process (AHP) Method at PT. MMG

Abstract

This research aims to design and implement a systematic and data-driven vendor performance measurement system at PT Multi Mitra Guna (MMG), which previously had no formal method to assess vendor performance. Performance measurement was conducted using five main criteria: Quality, Cost, Delivery, Flexibility, and Responsiveness (QCDFR). The Analytic Hierarchy Process (AHP) method was applied to objectively assign weights to each criterion and sub-criterion through a pairwise comparison questionnaire completed by six respondents from relevant divisions. Vendor performance assessment was subsequently conducted using the Vendor Performance Indicator (VPI) with a Likert scale. The findings show that PT. YBJ achieved the highest final score (0.331), followed by PT. LAR (0.235) and PT. SBR (0.222). Consequently, PT. YBJ is selected as the primary vendor, PT. LAR as the second option, and PT. SBR requires further evaluation. It is recommended that the AHP and VPI methods be applied periodically to maintain objectivity and consistency in future vendor assessments.