Bottleneck Items
What are they?
The item is high risk to your company
There are few suppliers
It is not a standard item
Your annual expenditure on the item is low
Your relatively low expenditure is likely to make your
purchases unattractive to suppliers
ITC M4:U6:6.1-1
, Bottleneck Items
What to do (I):
Focus on reducing risks - price & cost of acquisition is
of secondary importance
If possible, buy the item from one supplier for increased
leverage
If needed, use two suppliers to have a back-up option if
problems arise
ITC M4:U6:6.2-1
What are they?
The item is high risk to your company
There are few suppliers
It is not a standard item
Your annual expenditure on the item is low
Your relatively low expenditure is likely to make your
purchases unattractive to suppliers
ITC M4:U6:6.1-1
, Bottleneck Items
What to do (I):
Focus on reducing risks - price & cost of acquisition is
of secondary importance
If possible, buy the item from one supplier for increased
leverage
If needed, use two suppliers to have a back-up option if
problems arise
ITC M4:U6:6.2-1
