Strategies according to model's quadrants
| Commodity | Proposed strategies |
|---|---|
| Non- critical |
|
| Leverage |
|
| Strategic |
|
| Bottleneck |
|
| Commodity | Proposed strategies |
|---|---|
| Non- critical | Minimise administrative purchasing burden and costs through process standardisation and automation Tendering and contracting mechanism can be optional Using purchasing e-catalogue and e-requisition Achieve economies-of-scale purchase and reduce order frequency to save transactional and transport costs Not necessary to search for new suppliers |
| Leverage | Avoid high resource allocation to establish relationships with suppliers, both new and existing ones For commodities with high purchasing expenditure, utilise the aid organisation's buying power through competitive bidding and hard negotiation Exploit the organisation's purchasing through volume leveraging ( Develop short-term contracts with multiple suppliers, Perform ad-hoc or spot purchase in case of less fluctuated prices or no incentive in establishing a contract |
| Strategic | Allocate resources to mitigate the risk of supply disruptions Establish close relationships with suppliers for the cases of agriculture seeds and custom brokers with limited availabilities of such supplier in the market Enhance communication, leverage volume, information and knowledge exchange Work closely with suppliers in investing the supply preparedness Allow for purchase with premium prices Diversify and search for new sources of supply in various locations Purchase from local sources in case of high logistics disruption risk |
| Bottleneck | Secure the supply or ensure volume required in the short run Purchase with premium prices in some cases Consider option of safety stock Allocate resources, in the long run, to actively search for alternative sources of supply for the sake of diversification Consider the model of commodity substitution to increase the flexibility of the programmes |
Source(s): The authors
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