Decision Atlas
SRC

Sourcing & procurement

Who you buy from, how you split the volume, and the terms that share the risk.

9 stops, 9 ready to read

  1. Stop 1

    Procurement fundamentals

    From need to payment, the source-to-pay and procure-to-pay cycles, and the controls that keep buying honest.

    3 levels, 11 min in full

  2. Stop 2

    Kraljic matrix & category strategy

    Sorting what you buy by profit impact and supply risk, so each category gets the right buying strategy.

    3 levels, 9 min in full

  3. Stop 3

    Supplier selection & TCO

    Choosing suppliers on total cost of ownership and a balanced scorecard, not on the lowest quoted price.

    3 levels, 9 min in full

  4. Stop 4

    Single, dual or multi-sourcing

    How many suppliers to use for an item, and how to split the volume once capacity, lead time and risk are counted.

    3 levels, 9 min in full

  5. Stop 5

    Supplier network design

    Which supplier sites should feed which plants, weighing landed cost, lead time and risk, and where local sourcing beats global.

    3 levels, 9 min in full

  6. Stop 6

    Contracts & negotiation

    Price, volume and flexibility terms that share risk between buyer and supplier, and how to negotiate them.

    3 levels, 10 min in full

  7. Stop 7

    Make vs buy & contract manufacturing

    When to make something yourself, when to outsource it, and how to plan volume and capacity with co-packers.

    3 levels, 9 min in full

  8. Stop 8

    Commodity price risk & hedging

    Locking in input prices to limit cost swings, with contracts, forwards and futures, and why hedging is about stability, not winning.

    3 levels, 10 min in full

  9. Stop 9

    Supplier risk & n-tier visibility

    Seeing risks beyond your direct suppliers, scoring them, and acting before a sub-supplier you've never heard of stops your line.

    3 levels, 10 min in full

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Safety stock covers the surprises while you wait for a delivery. It grows with the square root of lead time, not with lead time itself.

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