4

SUPPLY MANAGEMENT

4.1  Supply Base Alignment

The four-box supply base strategy shown in Figure 4.1 is similar to the Kraljic* model, the most useful way I know to start thinking about different types of suppliers. There are several similar diagrams (watch out for the axes being switched) using similar names to describe similar approaches. This one uses names (leverage, partnership, secure supply, one-stop) that describe the approach to working with the suppliers in each quadrant.

The horizontal axis is about spend with the supplier. Leverage and partnership are obviously areas of high spend. Secure and one-stop are low spend. I generally see partnership and leverage segments together representing about 80% of the total spend.

The vertical axis ...

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