in which sourcing category would an item typically be classified, if it is considered to be high value, low risk, and there are multiple potential suppliers?

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28-10-2022
Business

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in which sourcing category would an item typically be classified, if it is considered to be high value, low risk, and there are multiple potential suppliers?

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sapanpandit sapanpandit · Answer 1 · 2022-11-03T12:21:26+01:00

In Leverage sourcing category would an item typically be classified, if it is considered to be high value, low risk, and there are multiple potential suppliers.

Leverage

Characterized by high value and low risk- reducing cost is important potential step. Most suitable example can be office supplies.

Bottleneck items

High risk and low value - here maintaining safety stock is important, Leverage building good relations with customers and also developing contingency plans. Most appropriate example can development of new potential technology.

Strategic

High risk and high value - here we always need to ensure that we have maintained the right quantity to be supplied, time to time basis innovation is required. Example is precious metals.

Non critical

Low risk and Low value - here we can reduce the quantity that is supplied.

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