5 questions to determine a SG Business Impact

Some times ago, I’ve posted on this blog a template of a tool I used to position a Sourcing Group (SG) in the CSSB quadrant matrix (Commodity – Strategic – Standard – Bottleneck). As you – may – know, this CSSB matrix enables to determine which strategy to apply and consequently which major tactics to use.

Below are the questions you need to answer to determine where to put the cursor with regards to a SG Business Impact:

  1. SIZE: Does the total purchase cost for the SG represent a major part of your company total external expenditures?
  2. VALUE ADDED: Do customers perceive significant value from the SG ?
  3. DIFFERENTIATION: Does the SG differentiate significantly the end-product?
  4. ENABLER: Does the SG provide access to leading technology critical to your customers?
  5. CRITICITY: Would a SG’s failure affect significantly your customer’s satisfaction?

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