The purchasing of products and services are not ranked at the same level because some items are of higher value and importance to the company. Supply chain managers use the quadrant technique to assess the importance of each product or services purchased by the company. They arecareful to apply different procurement and sourcing strategies as they relate to the risk and value or profit potential from the products and services the firm needs to function profitably.

• Generics
• Commodities
• Distinctives
• Critical

Generics have low risk, low value; commodities have low risk, high value; distinctive have high risk, low value; and critical have high risk, high value.

Review:Strategic Sourcing Facilitates Innovation, Transformation, and Cost Reduction

Challenge Question:

Yourdiscussion posts must be thorough, utilizing supporting information to substantiate your response.