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A dark store is considering implementing a strategic sourcing approach.

You have applied to lead the pilot project, and to review your insight you have

been asked to indicate how you would categorise the following suppliers:

Southern Packaging

: provider of packaging

material and shipping cartons

Artisanal Meat Supplies CC

: supplier that provides the retailer's branded preserved meat

packets that are sent as gifts to regular customers on their birthdays

Southern Packaging should be classified as routine

as they supply substitutable

products that can likely be sourced from alternative suppliers without much

disruption, while the unit cost of packaging material is typically low.

Artisanal Meat Supplies

should be

considered as

bottleneck

since they provide specialised products that

would likely be difficult to replace, however the total spend would likely be

low since the products are only sent to customers as birthday gifts.

Southern Packaging should be classified as critical

as they supply specialised

products that would likely be difficult to replace, while due to the large

volumes of packaging material consumed the total spend is likely to be high.

Artisanal Meat Supplies

should be

considered as

routine

since they provide specialised products that would

likely be difficult to replace, however the total spend would likely be low

since the products are only sent to customers as birthday gifts.

50%

Southern Packaging should be classified as leverage

as they supply substitutable

products that can likely be sourced from alternative suppliers without much

disruption, while due to the large volumes of packaging material consumed the

total spend is likely to be high.

Artisanal Meat Supplies

should be considered

bottleneck

since they provide specialised products that would likely

be difficult to replace, however the total spend would likely be low since the

products are only sent to customers as birthday gifts

50%

Southern Packaging should be classified as leverage

as they supply substitutable

products that can likely be sourced from alternative suppliers without much

disruption, however due to the large volumes of packaging material consumed the

total spend is likely to be high.

Artisanal Meat Supplies

should be

considered as

routine

since they provide specialised products that would

likely be difficult to replace, however the total spend would likely be low

since the products are only sent to customers as birthday gifts.

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