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Supplier Management Contribution Matrix

The Latest Matrix

The Supplier Management Contribution Matrix was initially developed for a McKinsey project, and based on the Frito-Lay vision of supplier ecosystems. it explains how a Purchasing or Procurement team can either have a tactical "cost oriented vision" or evolve towards developing strategies aimed at delivering true competitive advantages and contribute to shareholder value. In that case, suppliers can become intangible assets, sources of future benefits that do not appear on the balance sheet, and are difficult to protect.


Resource Management

  • Mature cooperation
  • Network leadership
  • External innovation
  • Exclusivity capture
  • Dedicated resources
  • Shared growth strategies
  • Suppliers as intangible assets
  • Purchasing as an actor of corporate strategy

Traditional Purchasing

  • Scale leverage
  • Hard negotiation
  • Purchasing is internally passive
  • Multiple suppliers …

TCO Optimization

  • Simplification
  • System optimization
  • E-Procurement
  • Purchasing takes a cross functional perspective