The Category Management Handbook

Activity 20Supplier preferencing

Figure 3.8 Supplier preferencing

Source: adapted from Steele and Court (1996)

Overview

Originated by Paul Steele and Brian Court in the mid-1990s, this model enables procurement functions to understand how a supplier might value its account with them. It suggests that from the supplier’s perspective there is a correlation between the attractiveness of the buyer’s account and the revenue generated, which in turn affects how the supplier will manage its account with the buyer.

In many ways, this matrix provides a counterview to the Kraljic matrix in that it is a representation of the supplier’s perspective of business. ...