05_Commodity_strategy_development

05_Commodity_strategy_development - Commodity Strategy...

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- 1 - Commodity Strategy Development
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- 2 - Commodity Strategy Development What is strategy? What is a commodity strategy? Aligning sourcing and enterprise objectives
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- 3 - Before your begin with strategy development… conduct a spend analysis Most Important Areas for Performance Improvement Increase in Spend Visibility
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- 4 - Before your begin with strategy development… perform a portfolio analysis For each quadrant… Find an example product/service Describe the general supply characteristics Suggest feasible sourcing strategies Leverage Strategic Non-Critical Critical IMPORTANC E High Low High Low RISK Source: P. Kraljic, Purchasing must become supply management. Harvard Business Review 61 5 (1983), pp. 109–117. Kraljic’s Purchasing Portfolio Matrix
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- 5 - Strategic Sourcing Process Profile category Select sourcing strategy Generate supplier portfolio Select implementation path Negotiate and select suppliers Integrate suppliers Monitor supply market 1 2 3 4 5 6 7
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- 6 - Profile the Category
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05_Commodity_strategy_development - Commodity Strategy...

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