For an organization with which you are familiar, provide an example of each of the four categories of purchases shown in Figure 10-2. What category strategy would you use for each? Why?

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Value of Spend to Firm High Low Leverage Standardize purchases Use competition to select suppliers Consolidate purchases Noncritical Increase efficiencies Electronic catalogs Purchasing cards Vendor-managed inventory Low Strategic Build collaborative partnerships Single or dual source Have executive champions in both companies Bottleneck Use multiple sources Find substitute materials Develop new suppliers Level of Supply Risk High