Some times ago, I’ve posted in this blog a template of the tool I used to position a Sourcing Group(SG) in the CSSB matrix (Commodity – Strategic – Standard – Bottleneck). May I remind you that this CSSB matrix enables to determine the strategy to apply and consequently the top tactics to use.
Below are the questions you need to work on and answer to determine where to put the cursor about Market Complexity:
- Are SG’s suppliers competing strongly (and mainly?) on prices?
- Can a new entrant easily setup and gain business?
- Would it be easy to use substitutes with a lower TCO?
- Supplier power: Can you really easely change of supplier?
- Your power: Are you one of the top clients of your supplier(s)?