Critical Items
What are they?
They are non-standard
There are few suppliers
Few alternatives exist
The risk to your company is high
Your annual expenditure on the item is high
Your relatively high expenditure makes your purchases
attractive to suppliers
ITC M4:U7:7.1-1
, Critical Items
Suppliers will typically have a small number of large
customers
The numbers of suppliers to switch to will be limited
Partnership is the ideal relationship
ITC M4:U7:7.2-1
, Developing a partnership:
Partnerships involve time & effort and are based on trust
You need to be willing to work closely with the supplier and to
share information
Select a partner with which you can develop a competitive
advantage
The contract is more of an expression of
long-term commitment and one that GOAL
states the ground rules
ITC M4:U7:7.2-2
What are they?
They are non-standard
There are few suppliers
Few alternatives exist
The risk to your company is high
Your annual expenditure on the item is high
Your relatively high expenditure makes your purchases
attractive to suppliers
ITC M4:U7:7.1-1
, Critical Items
Suppliers will typically have a small number of large
customers
The numbers of suppliers to switch to will be limited
Partnership is the ideal relationship
ITC M4:U7:7.2-1
, Developing a partnership:
Partnerships involve time & effort and are based on trust
You need to be willing to work closely with the supplier and to
share information
Select a partner with which you can develop a competitive
advantage
The contract is more of an expression of
long-term commitment and one that GOAL
states the ground rules
ITC M4:U7:7.2-2
