QUESTION 1:
Choose an organisation you are familiar with, or can research easily.
Using Kraljic’s Portfolio approach categorise a number of purchased items based on their relative importance. Try to establish the potential impact of the supplied items on your organisation’s financial performance and the potential risks posed by the supply market.
Routine /Non-Critical Products – High Profit Impact/Low Supply Risk
Leverage Products – High Profit Impact/Low Supply Risk
Bottleneck Products – Low Profit Impact/High Supply Risk
Strategic Products – High Profit Impact/High Supply Risk
QUESTION 2:
Consider the general advantages and disadvantage of establishing a single source of supply for materials used in manufacturing. From your own or a suitably selected organisation, give examples of each category of material, using Kraljic’s definitions.
Category Of Material Advantages Disadvantages
Non-critical
Leverage Item
Bottleneck Item
Strategically important
Item
QUESTION 3:
Assuming you are considering sourcing from abroad, what sort of general information do you need about potential suppliers?
What sources of information might you use?
Sample Solution