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Business Impact High

The current and future state relationship between buyer & the supplier. Current State. Possible Future State. BUYER PERSPECTIVE. LEVERAGE STRATEGIC. LEVERAGE STRATEGIC. Use competitive advantage to reduce total costs Use enterprise-wide sourcing volumes as a negotiation tool.

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Business Impact High

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  1. The current and future state relationship between buyer & the supplier Current State Possible Future State BUYER PERSPECTIVE LEVERAGE STRATEGIC LEVERAGE STRATEGIC • Use competitive advantage to reduce total costs • Use enterprise-wide sourcing volumes as a negotiation tool • Ensure long term availability of supply • Focus on relationship building and process integration with supplier • Use competitive advantage to reduce total costs • Use enterprise-wide sourcing volumes as a negotiation tool • Ensure long term availability of supply • Focus on relationship building and process integration with supplier Business Impact High Business Impact High ROUTINE BOTTLENECK ROUTINE BOTTLENECK • Simplify and streamline acquisition process to achieve efficiencies / cost reduction • Reduce number of suppliers and simplify sourcing process • Simplify and streamline acquisition process to achieve efficiencies / cost reduction • Reduce number of suppliers and simplify sourcing process • Reduce/eliminate company’s risk and exposure to price increases/supply disruption • Secure existing sources of supply and search for possible substitutes • Reduce/eliminate company’s risk and exposure to price increases/supply disruption • Secure existing sources of supply and search for possible substitutes Market Challenge High Market Challenge High SUPPLIER PERSPECTIVE DEVELOPMENT CORE DEVELOPMENT CORE • Defend vigorously expand if possible • Potential long term relationship • Defend vigorously expand if possible • Potential long term relationship • Nurture & Expand Business • Seek opportunities • Develop Business together • Nurture & Expand Business • Seek opportunities • Develop Business together Account attractiveness High NUISANCE EXPLOITABLE NUISANCE EXPLOITABLE Account attractiveness High • Give low attention • Lose without pain • Change supplier • Raise attractiveness • Exploit commercially • Risk losing • High Risk • Give low attention • Lose without pain • Change supplier • Raise attractiveness • Exploit commercially • Risk losing • High Risk Relative Value of Business Relative Value of Business

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