Enterprise risk has never been a higher priority for businesses, executives and procurement practitioners than right now in light of the COVID-19 crisis. The coronavirus disruption has only accelerated many enterprise risks — from cyberthreats, employee health and safety, and most certainly, to supply risks affecting suppliers in complex value chains.
In a landmark 1983 article in the Harvard Business Review, Peter Kraljic introduced a purchasing portfolio model using a 2 x 2 matrix. The Kraljic model was based on the premise that purchased products and services can vary significantly in terms of importance and risk. Based on this, procurement professionals should use different sourcing and supplier management strategies depending on the importance and risk profile of each purchase.
Can you outline why your team embarked on this project and the problem that needed to be solved?
How were things done originally and what was the inspiration to innovate the process?
In this episode of the Sourcing Industry Landscape, Dawn Tiura interviews Kazu Gomi. Kazu Gomi, CEO of NTT America, ranks as the 4th largest telecommunication company in the world. We learn the breadth and depth of NTT’s capabilities, from system integration, (they acquired Dell Services a few years ago) and are also one of the largest security companies in North America.