QUESTION 1:

You are buyer in a company and your portfolio of suppliers and commodities (the things you buy) is as following:

You buy some commodities from several suppliers, for example commodity 01 is bought from 2 suppliers, commodity 10 is bought from 3 suppliers.

Supplier Name	Annual Spend	Number of invoices per year			Commodity Code	Number of suppliers	Number of invoices per year
SUPP A	200	12			Cod 01	2	2
SUPP B	10	3			Cod 02	4	6
SUPP C	2	10			Cod 03	6	37
SUPP E	32	4			Cod 04	10	72
SUPP F	320	130			Cod 05	5	5
SUPP G	126	138			Cod 06	7	32
SUPP H	4	43			Cod 07	2	3
SUPP I	56	10			Cod 08	1	130
SUPP J	4	11			Cod 09	1	16
SUPP K	78	2			Cod 10	3	3
SUPP L	3	4			Cod 11	1	4
SUPP M	22	5			Cod 12	1	2
SUPP N	3	6			Cod 13	7	7
SUPP O	2	5			Cod 14	5	156
SUPP P	6	8			Cod 15	2	2
SUPP Q	5	56			TOTAL		477
SUPP R	1	10
SUPP S	4	2
SUPP T	3	16
SUPP U	2	2
TOTAL	883	477

Make an ABC analysis on suppliers based on spend and number of invoices.

Make an ABC analysis on Commodities based on spend and number of invoices.

Which recommendations can you make?