Measures the importance of the item to the company's bottom line, considering factors like total spend, value added, and the item's role in the final product's quality.
Examples: Custom engine components, patented pharmaceutical ingredients, specialized IT infrastructure. strategic sourcing matrix
The intersection of these axes creates four distinct quadrants, each requiring a specific sourcing strategy. Measures the importance of the item to the
By knowing exactly where a product sits on the grid, you know exactly how to buy it. Do that consistently, and you stop firefighting supply chain crises and start building a moat around your business. By knowing exactly where a product sits on
The matrix is a simple 2x2 grid. To place your products or services, you must answer two fundamental questions:
You don't need expensive software to start. Grab a whiteboard.
Process automation, supplier consolidation, and framework contracts.