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5-4.11 Quadrant Approach

A quadrant approach (see Figure 5.5) classifies Postal Service purchases into four categories, depending on their impact on the Postal Service core competencies (noncore versus core) and complexities (standard versus custom). Depending on the quadrant, the stocking decisions, replenishment, and disposal of inventory will be structured differently.

Figure 5.5

Quadrant Approach

Figure 5.5 Quadrant Approach

5-4.11.1 Quadrant I: Custom/Noncore Purchase

These items contribute significant supporting capability to the Postal Service and are considered specialized. The stocking decisions should take into account that specifications for requirements change, which may cause the current stock to be oversupplied and have to be removed. Care should be taken not to overstock items.

5-4.11.2 Quadrant II: Custom/Core Purchase

These items create direct value for the end client; examples include specialized software and critical raw materials. In these cases, items should be readily stocked so they can be accessed quickly because they are pertinent to Postal Service operations. Stocking decisions should reflect the continual search for innovation in form and usage to provide a consistent stream of new opportunities to build a competitive advantage.

5-4.11.3 Quadrant III: Standard/Noncore Purchase

These items are essential to support the business infrastructure, but do not relate or provide value to the end client. The supplier frequently manages the complete supply chain process, in addition to supplying the product or service.

5-4.11.4 Quadrant IV: Standard/Core Purchase

These items create value for the end client, but do not need to be customized exclusively by the Postal Service. JIT purchasing is an option in Quadrant IV.




Link to "5-4.10 Systems for the Reorder Process" Link to contents for "5 USPS Supplying Practices Process Step 5: Measure and Manage Supply"      Link to "5-4.12 Other Topics Considered"