Some are more important than others and require greater procurement attention
The quadrant technique enables the supply chain manager to assess the relative importance of each item based on the degree of perceived value and risk
Materials Management : Managing the Procurement Process
1.Determine the type of purchase
New
Straight re-buy
Modified re-buy
2.Identify the type of purchase
-determine the necessary levels of investment of time and information
-the more complex the purchase,the more time needs to be spent and more information needs to be gathered to get it right the first time
3.Perform the procurement process
Do those activities that are necessary to effectively make a purchase and satisfy the user's requirements
4.Evaluate the effectiveness of the procurement process
were the user's needs satisfied?
was the investment necessary?
Concerns
cost of materials and
Cost ON materials