What comes next?
SWOT analysis
Categorise the appraised suppliers
Record the assessments
Review the outcome
with suppliers
Determine what you can do to further develop
or motivate certain key suppliers
Update your overall assessment of the level of
supply risk
ITC M5:U8:8.1-1
, SWOT stands for:
SWOT Analysis S trengths
W eaknesses
O opportunities
T hreats
S W
O T
ITC M5:U8:8.2-1
, SWOT Analysis - an example
Ours: • We are their first client in a
new market Ours:
• Small but growing business
• Relatively small purchase volume
Theirs: • Leader in their home market • Lack of negotiation skills
• Deal in both raw materials & • Lack of experience in our market
finished products
Theirs:
• Better access to market
information • Excess capacity
• Good technical support • No product differentiation
capacity SW
OT
• They may force us into sole source contract
that restricts sourcing elsewhere
• Long term contract
- guaranteed supply
• They may sell to our competitors too
• They provide training to our
product design staff • They may withdraw from our market if
not successful
• Possibility to buy back some
of our production • They may increase prices at the end of
the first contract
ITC M5:U8:8.2-2
SWOT analysis
Categorise the appraised suppliers
Record the assessments
Review the outcome
with suppliers
Determine what you can do to further develop
or motivate certain key suppliers
Update your overall assessment of the level of
supply risk
ITC M5:U8:8.1-1
, SWOT stands for:
SWOT Analysis S trengths
W eaknesses
O opportunities
T hreats
S W
O T
ITC M5:U8:8.2-1
, SWOT Analysis - an example
Ours: • We are their first client in a
new market Ours:
• Small but growing business
• Relatively small purchase volume
Theirs: • Leader in their home market • Lack of negotiation skills
• Deal in both raw materials & • Lack of experience in our market
finished products
Theirs:
• Better access to market
information • Excess capacity
• Good technical support • No product differentiation
capacity SW
OT
• They may force us into sole source contract
that restricts sourcing elsewhere
• Long term contract
- guaranteed supply
• They may sell to our competitors too
• They provide training to our
product design staff • They may withdraw from our market if
not successful
• Possibility to buy back some
of our production • They may increase prices at the end of
the first contract
ITC M5:U8:8.2-2
