I hope that you have enjoyed the article \u201cSupplier Stratification & The Dominick Matrix.\u201d<\/p>\n
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Like many things in our profession of procurement\/purchasing\/supply management\/sourcing\/acquisition, there is no standard for supplier stratification.\u00a0 However, there are some approaches that make more sense than others.<\/p>\n
I believe that the approach that I\u2019ve outlined in the aforementioned article is one of those that make the most sense.\u00a0 Because the concept of supplier stratification encompasses concepts both from that article and the preceding PurchTips article, \u201cSupplier Collaboration, Development, More,\u201d allow me to summarize a few of the salient points here and then I will introduce the Next Level Purchasing Association\u2019s latest model, the Dominick Matrix.<\/p>\n
First, let\u2019s restate the definitions of four approaches you can take to work with a supplier:<\/p>\n
Supplier collaboration <\/b>means working with decision-makers at a supplier to determine improvements that can be made that will have a measurable, positive financial impact for both organizations.<\/p>\n
Supplier development<\/b> means devoting some of your organization\u2019s resources to a project that develops a supplier\u2019s capabilities or expertise beyond current levels.<\/p>\n
Supplier management<\/b> means collecting metrics about a supplier\u2019s performance for your organization, sharing those metrics with the supplier, and discussing and implementing ways that the supplier can improve its performance as measured by those metrics.<\/p>\n
Supplier rationalization<\/b> means reducing the number of suppliers by consolidating purchases with fewer suppliers.<\/p>\n
Second, let\u2019s review when to use each one of these approaches:<\/span><\/p>\n Finally, let me introduce you to the Dominick Matrix, which gives a quick, at-a-glance visual representation of which approach to use when:<\/p>\n Sometimes, the most successful way of getting started \u2013 and eventually succeeding \u2013 with something complex, is by simplifying things.\u00a0 I think that the Dominick Matrix, just like the Procurement Funnel, helps you in exactly this manner.\u00a0 Good luck using it!<\/p>\n","protected":false},"excerpt":{"rendered":" I hope that you have enjoyed the article \u201cSupplier Stratification […]<\/p>\n","protected":false},"author":12,"featured_media":4097,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n\n