Supply Strategy Objectives, Main feature of Supply strategy, 4 Quardants of Supply Positioning Model

Corporate
strategy

Purchasing &
supply objectives



Purchasing &
supply strategy

ITC M4:U2:2.1-1

, Examples of supply objectives
Area Examples of possible supply objectives
A. Quality  Ensure a performance reliability rate of no less
than X%.

 Ensure an availability rate of no less than 99%
B. Availability
for high priority items.


C. Supplier service  Ensure that all suppliers of equipment and
& responsiveness components are able to respond to technical
queries within 24 hours.

D. Cost reduction  Ensure that all equipment purchased is evaluated
before acceptance based on its life-cycle cost.

ITC M4:U2:2.1-2

, The Supply Positioning Model

Takes into account:

The level of annual expenditure
on an item

The potential impact on the
enterprise of not meeting supply
targets

Supply opportunities & risks
ITC M4:U2:2.2-1