57 3.3 Supply Strategies and Selection of Suppliers

Objectives

By the end of this section, you should be able to:

1.  Identify the quadrants of the Portfolio Analysis Matrix and describe their main features and implications for supply strategy.

2.  Identify the criteria for appraising suppliers in terms of the supply targets.

3.  Identify the benefits and challenges of global sourcing.

Introduction

Once the buyers have educated themselves to the point that they feel they know enough about the supply market conditions, the forecasted spending, and the userstakeholder requirements, they are faced with a different challenge. A buyer must convert all of this data into meaningful knowledge and apply some meaningful tools to structure the information so that it will render an effective decision. Two tools are most often used in this process, the portfolio analysis matrix and the supplier evaluation scorecard.

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