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Title: Supply Strategy Objectives, Main feature of Supply strategy, 4 Quardants of Supply Positioning Model
Description: Supply Strategy Objectives, Main feature of Supply strategy, 4 Quardants of Supply Positioning Model
Description: Supply Strategy Objectives, Main feature of Supply strategy, 4 Quardants of Supply Positioning Model
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Corporate
strategy
Purchasing &
supply objectives
Purchasing &
supply strategy
ITC
M4:U2:2
...
Quality
B
...
Ensure an availability rate of no less than 99%
for high priority items
...
Supplier service
& responsiveness
Ensure that all suppliers of equipment and
components are able to respond to technical
queries within 24 hours
...
Cost reduction
Ensure that all equipment purchased is evaluated
before acceptance based on its life-cycle cost
...
1-2
The Supply Positioning Model
Takes into account:
The level of annual expenditure
on an item
The potential impact on the
enterprise of not meeting supply
targets
Supply opportunities & risks
ITC
M4:U2:2
...
2-2
The Supply Positioning Model
Helps you to:
Prioritise your time and effort
Develop your supply strategies
ITC
M4:U2:2
...
2-4
What do these
quadrants mean
to you?
Routine
Leverage
Bottleneck
Critical
ITC
M4:U2:2
...
2-6
Action Point
2
...
2-7
The Supply Positioning Model - some examples
Bottleneck
Critical
Routine
Leverage
I/SO/R
rating
A
B
C
D
Expenditure
ITC
M4:U2:2
...
2-9
Your overriding objective
...
is to increase leverage!
Reduce Risk
I/SO/R
rating
Critical
Reduce Risk
Bottleneck
Increase expenditure
Routine
Leverage
Expenditure
ITC
M4:U2:2
...
g
...
g
...
2-11
Review the specifications and go
for standards where possible
Work with suppliers to develop
their capabilities
ITC
Reduce Risk
Identify new sources through
supply market analysis
M4:U2:2
...
2-2
Moving towards the leverage quadrant
•Routine item: Ways to increase expenditure and/or reduce risk
•Bottleneck item: Ways to increase expenditure and/or reduce risk
•Critical item: Ways to increase expenditure and/or reduce risk
ITC
M4:U2:2
...
3-1
Title: Supply Strategy Objectives, Main feature of Supply strategy, 4 Quardants of Supply Positioning Model
Description: Supply Strategy Objectives, Main feature of Supply strategy, 4 Quardants of Supply Positioning Model
Description: Supply Strategy Objectives, Main feature of Supply strategy, 4 Quardants of Supply Positioning Model