The purchasing manager has provided the following information for your use:
|
Spend Category
|
Amount Thousands US$
|
Number of Suppliers
|
|
Production Machinery
|
170
|
2
|
|
Maintenance
|
20
|
10
|
|
Hardware
|
3
|
10
|
|
Sheet Metal
|
23
|
7
|
|
Electronic Components
|
288
|
5
|
- Assuming that the amounts shown represent the total annual spend, calculate the percent of spend for each category.
- Classify each spend category as either low or high complexity and summarize your reasoning.
- Create a 2x2 Risk/Value matrix showing each of the five spend categories. Explain why you placed each item in the selected category.