Procurement Capability-Value Matrix

The Procurement Capability-Value Matrix is a 2x2 matrix used to evaluate the capability of a supplier and the value they provide to an organization. It is used to determine the best suppliers to work with.

At a very high level, the Procurement Capability-Value Matrix is used in the context of business, procurement.

Procurement Capability-Value Matrix quadrant descriptions, including examples
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What is the Procurement Capability-Value Matrix?

A visual explanation is shown in the image above. The Procurement Capability-Value Matrix can be described as a matrix with the following quadrants:

  1. High Capability, High Value: Suppliers with high capability and high value, such as those with extensive experience in the industry and competitive pricing.
  2. High Capability, Low Value: Suppliers with high capability but low value, such as those with extensive experience in the industry but high prices.
  3. Low Capability, High Value: Suppliers with low capability but high value, such as those with limited experience in the industry but competitive pricing.
  4. Low Capability, Low Value: Suppliers with low capability and low value, such as those with limited experience in the industry and high prices.

What is the purpose of the Procurement Capability-Value Matrix?

The Procurement Capability-Value Matrix is a 2x2 matrix used to evaluate the capability of a supplier and the value they provide to an organization. It is used to determine the best suppliers to work with, by assessing their capability and value in relation to the organization's needs.

The matrix is divided into four quadrants, each representing a different combination of capability and value. The top-left quadrant represents suppliers with high capability and high value, the top-right quadrant represents suppliers with high capability and low value, the bottom-left quadrant represents suppliers with low capability and high value, and the bottom-right quadrant represents suppliers with low capability and low value.

The Procurement Capability-Value Matrix is a useful tool for organizations to assess potential suppliers and make informed decisions about which suppliers to work with. It can also be used to identify areas of improvement for existing suppliers, and to prioritize the development of new suppliers.


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What templates are related to Procurement Capability-Value Matrix?

The following templates can also be categorized as business, procurement and are therefore related to Procurement Capability-Value Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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