Patrick, a Category Manager, is procuring a high-cost item with many suppliers available and low switching costs. According to the Kraljic Matrix, what type of supplier is this?
In the Kraljic Matrix, leverage items are high value but have many suppliers and low switching costs. The L5M5 study guide (old p.108, new p.154) explains that buyers have strong negotiation power in leverage situations and can achieve cost savings without high risk. Bottleneck items (B) are low-value but high-risk due to limited suppliers, routine items (C) are low-value and low-risk, and strategic items (D) are high-value and high-risk. Procurement professionals must use leverage strategically to maximise value.
???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.154
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