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Glossary

What is the supply positioning model?

The supply positioning model sorts what you buy by two measures, spend and supply risk, so procurement can choose the right sourcing strategy and relationship for each category.

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How the model works

Each category or supplier is placed on a grid. One axis is the value of spend, the other is supply risk: how hard the item is to source and how much the business suffers if supply fails. That gives four quadrants:

  • Routine. low spend, low risk. Keep buying simple and cheap to process.
  • Leverage. high spend, low risk. Use competition to win better terms.
  • Bottleneck. low spend, high risk. Secure supply and find alternatives.
  • Critical. high spend, high risk. Build close, long term partnerships.

Why it matters

Treating every supplier the same wastes effort. The model shows where to invest time in relationships, where to run competitive events and where to automate. It also highlights the small, risky items that can stop production if ignored. The model is related to the Kraljic matrix, and many teams use the two names loosely.

How Aavenir handles it

Aavenir Atlas answers questions across your contract portfolio, such as how much you spend with a supplier, which items are single source and what exit terms apply, which gives each quadrant real data. Sourcing strategy can then be run in RFPflow.

Keep reading

Category management Category management is a strategic approach to procurement that groups spend into categories of similar goods or services...Read more Spend analysis Spend analysis is collecting, cleaning, classifying and analyzing spend data to see what an organization buys, from whom and...Read more Supply management Supply management is finding, buying and managing the goods, services and suppliers an organization needs to operate and...Read more

Frequently asked questions (FAQ)

Common questions

Is the supply positioning model the same as the Kraljic matrix?

They are closely related. Both map purchases by value and supply risk into four quadrants. Teams often use the names interchangeably, though some versions label the axes and quadrants slightly differently. Read about category management.

How do you measure supply risk for the model?

Look at the number of qualified suppliers, switching cost, lead times, geographic concentration, supplier financial health and the impact on operations if supply stops. Score each consistently so categories can be compared. Read about risk analysis.

How often should you update the model?

Review it yearly and whenever something big changes, such as a supplier exit, a new regulation or a shift in market prices. A category can move between quadrants as the market changes. Read about supplier segmentation.

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Schedule a demo

See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

Prefer to talk first? Contact the team.