The first step in A.T. Kearney’s 7 Step Model of Strategic Sourcing is Supplier Portfolio Generation. The model provides a structured approach to sourcing, beginning with an understanding of current spend and supplier landscape before progressing to strategy development and implementation.

The seven steps are:

Profile spend and supply base.

Develop sourcing strategy and cost comparison.

Generate supplier portfolio.

Select implementation path.

Select competitive suppliers.

Integrate operations with suppliers.

Continuously benchmark supply market.

The reason supplier portfolio generation is first is because procurement must identify potential suppliers and the overall supply base structure before choosing strategies or engaging in competitive selection. Skipping this step risks building a strategy without understanding available market options.

Thus, while options C and D are important later in the process, they cannot occur without first mapping the supplier portfolio.

[Ref: CIPS L5M6 Study Guide, Chapter 1.2 – Strategic Sourcing Models, esp. p.31–32]