During Commodity/PROcurement EDGE yesterday, AMR Research alum Pierre Mitchell provided a highly detailed presentation on the solution and technology between direct procurement, commodity management, and supply chain. We’ll save the details of the depths of his discussion for another day, but we will offer up one humorous aside from his talk. In his research for the talk, we came across a Gartner framework. But in looking at the Stamford special two-by-two, something seemed off.
It was not a Gartner chart after all. It turned out to be a 99%-identical adaption of the famous Peter Kraljic procurement segmentation two-by-two (see below) that divides procurement focus and strategy into four different quadrants. These can be roughly be described as automate (bottom left), leverage/source (upper left), partner (upper right), and bottleneck (lower right). The X axis in the Kraljic model is represented by “Complexity of Supply,” while the Y axis is “Importance” or “Significance of Purchasing.”
By way of comparison, the chart that Gartner provided in their report, Supplier Scorecards Drive Supply Chain Value and Performance looked very similar - Note that Gartner sources this to their own firm. Perhaps there is a saving grace in the so-called citation. To wit, Gartner added “risk” to their X axis (I think this is simply wrong, but I’ll leave it at that for today). Regardless, this 99.999% “adaption” without reference is clearly not a mistake that the old AMR Research would have made.