Sourcing Plus

Supplier Management Contribution Matrix

The Latest Matrix

The Supplier Management Contribution Matrix was initially developed for a McKinsey project. it explains how a Purchasing or Procurement team can either have a tactical "cost oriented vision" or evolve towards developing strategies aimed at delivering true competitive advantages and contribute to shareholder value.

Impact
Value
 

Resource Management

  • Mature cooperation
  • Network leadership
  • External innovation
  • Exclusivity capture
  • Dedicated resources
  • Shared growth strategies
Cost

Traditional Purchasing

  • Scale leverage
  • Hard negotiation
  • Multiple suppliers …

TCO Optimization

  • Simplification
  • System optimization
  • E-Procurement
   
Tactical
Strategic
   
Scope