2 0 Sourcing Strategy for Sourcing Group The

2. 0 Sourcing Strategy for Sourcing Group The Sourcing Group positioning matrix helps to identify and select the best sourcing strategy Sourcing Group Positioning Matrix High Leverage Sourcing Groups Strategic Sourcing Groups Noncritical Sourcing Groups Bottleneck Sourcing Groups Sourcing Group’s Business Impact Low High Sourcing Group’s Supply Market Complexity

Sourcing Group Positioning Matrix High C D E F A Low High B

2. 0 Sourcing Strategy for Sourcing Group The supply market complexity drives the sourcing strategy Strong position relative to the SG’s market Sourcing Strategy Exploit Buying Power Weak position relative to the SG’s market Create An Advantage

2. 0 Sourcing Strategy for Sourcing Group For each sourcing strategy three basic approaches are available Area of Application The six basic approaches of Strategic Sourcing Group Positioning Sourcing Strategy Volume Concentration Best Price Evaluation Exploit buying power Create an advantage Product Specification Improvement Strategic Sourcing Joint Process Improvement Basic Approaches Volume Concentration Best Price Evaluation Strategic Sourcing Global Sourcing Relationship Restructuring Product Specification Improvement Strategic Sourcing Joint Process Improvement Relationship Restructuring