Question: A dark store is considering implementing a strategic sourcing approach. You have applied to lead the pilot project, and to review your insight you have
A dark store is considering implementing a strategic sourcing approach. You have applied to lead the pilot project, and to review your insight you have been asked to indicate how you would categorise the following suppliers:
Southern Packaging: provider of packaging material and shipping cartons
Artisanal Meat Supplies CC: supplier that provides the retailer's branded preserved meat packets that are sent as gifts to regular customers on their birthdays
Southern Packaging should be classified as routine as they supply substitutable products that can likely be sourced from alternative suppliers without much disruption, while the unit cost of packaging material is typically low.
Artisanal Meat Supplies should be considered as bottleneck since they provide specialised products that would likely be difficult to replace, however the total spend would likely be low since the products are only sent to customers as birthday gifts.
Southern Packaging should be classified as leverage as they supply substitutable products that can likely be sourced from alternative suppliers without much disruption, while due to the large volumes of packaging material consumed the total spend is likely to be high.
Artisanal Meat Supplies should be considered as bottleneck since they provide specialised products that would likely be difficult to replace, however the total spend would likely be low since the products are only sent to customers as birthday gifts
Southern Packaging should be classified as leverage as they supply substitutable products that can likely be sourced from alternative suppliers without much disruption, however due to the large volumes of packaging material consumed the total spend is likely to be high.
Artisanal Meat Supplies should be considered as routine since they provide specialised products that would likely be difficult to replace, however the total spend would likely be low since the products are only sent to customers as birthday gifts.
Southern Packaging should be classified as critical as they supply specialised products that would likely be difficult to replace, while due to the large volumes of packaging material consumed the total spend is likely to be high.
Artisanal Meat Supplies should be considered as routine since they provide specialised products that would likely be difficult to replace, however the total spend would likely be low since the products are only sent to customers as birthday gifts.
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