Risk at the product/service level
On a micro-level, the product/service risks and uncertainties are influenced by how
they are positioned by both buyers and/or sellers. Figures 1 and 2 illustrate these using
a variant of the Kraljic (1983) model as espoused in his 1983 Harvard Business Review
article, first indicating an expanding role of purchasing toward that of supply. By
applying axes of value/profit potential versus risk/uniqueness, a quadrant methodology provides insights relevant to supply costs and risk.