Previously we have considered the tactical and the leveraged targeted procurement strategies. During this intervention we will be considering the targeted procurement interventions in the strategic arena. In the strategic space there are two areas to consider. The one is the Strategic Critical which we will discuss later and the other is the bottleneck domain.
The Bottleneck arena has some of the most important suppliers to any company. The risk here is around ‘surety of supply’ which is a critical risk to the company. As the risk is to such a high degree this space would therefore not be the targeted procurement focus of the company.
The strategic sourcing arena normally is the core of the value chain, but this space also leans to significant spend/ volume and risk. These are all reasons why access for small companies to the strategic sourcing arena would be difficult. The way into this space would therefore normally be by building a relationship in the leveraged sourcing arena. Entry into this space by a QSE/EME would encompass quite a strong hands on approach and all the approaches in this space is long term (Three to Five years) in nature.
The following are some Targeted Procurement initiatives for Black and Black Woman Owned QSE/EME companies that can take place here:
Test strategy followed by high-growth intervention