1. explain and asses the importance of the differences between the CAAVE and Kraljic models

2. synthesize the concepts of business models and relationship compatibility and trust with regard to sustainable healthcare supply chain management practices

3. evaluate the application of the different sourcing business models in the context of the healthcare supply chain.

IGURE 11.3 CAAVE Model Compared to Kraljic Model CAAVE MODEL Comparison Kraljic Model Kraljik Model Segmentation Guideline Less Aligned Market Situational Alignment Different than Kraljik Model More Aligned Building VALUE SEEKING Opportunistic Adaptive, Empathetic or Vested in priority) VALUE BUILDING Integrative Vested or Adaptive in priority) Multiple Firm Perspective Single Firm Perspective - Integrates Vested Methods Alignment Focused Relationship Dynamics VALUE FADING Problematic Avoidance, Competitive or Empathetic (in priority) VALUE HOLDING Protectionistic Competitive or Adaptive (in priority) +Styles Embedded 5 LEVERAGE: STRATEGIC: Multiple Qualified Strategic control sources Proprietary Defined standard material specifications Critical to brand 1 4. Leverage across Competitive N business units advantage T Consolidated Total Cost Analysis volumes Target Costs N 3 Link with other Product R&D International regions NON-CRITICAL: BOTTLENECK: M 2 . Pre-approved supply single source of Non-critical to brand supply . Low spend Proprietary material Y Multiple products Outdated available from specification suppliers - Quality issues Catalog of products LOW spond Distributor Celton to product arrangement e r 1 2 3 4 SUPPLY MARKET COMPLEXITY Non-Building Less Aligned Organization/Firm Alignment More Aligned Basis is Competition and Competitive Advantage- Information and Knowledge Age Based Industrial Age Based Uncertainty Reduction and Risk Sensitive