PROPER CLUSTERING, PROPER STRATEGY
A proper clustering for a proper strategy. Once we have analyzed our purchasing volume, the next step to bring transparency to our material group is to cluster it properly.
«Clustering» means to split up our material group in order to understand and analyze it deeper, and later create the proper material group strategy per each specific cluster.
As the goal of the material group strategy is to assure the purchasing principles by creating competition, the goal of clustering is to have competitor suppliers in each specific cluster. That is to say, comparable suppliers in terms of technology, process, capabilities and locations according to sourcing strategy and locality (local or global).
With this analysis we better understand not only our pool of components and suppliers, but also our business: how many different strategies we need and the purchasing volume for each of them, the supplier portfolio of each cluster/material strategy and if the right sourcing strategy, global, regional or local is already in place.
For this reason, the better we cluster our material group, the better strategy we will be able to define later on.
If you are interested in investing in an exceptional team and increasing your company’s profitability, we encourage you to consider our next training focused on improving strategic purchasing skills. Additionally, please feel free to contact us for more information.
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