A quadrant approach 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 proposal evaluation strategy will be structured differently (examples of this are illustrated in Figure 2.11).
Figure 2.11
Quadrant Approach
The strategic approach regarding Quadrant I requires supply continuity, which can be achieved through managing the supply base and standardization. Proposal evaluation factors and weighting factors should emphasize selecting standard products and low-cost providers.
The strategic approach for Quadrant II is striving for high-value-added relationships with suppliers, which can be achieved by increasing the role of selected suppliers in supply chain activities. Proposal evaluation factors and their relative importance should emphasize the suppliers’ commitment to innovation (processes, features, and/or attributes) and market leaders with established positions and demonstrated competitive advantages in their products and services, because these are differentiating aspects.
The strategic approach regarding Quadrant III requires simplifying the purchase process, achieved by reducing effort and associated costs. Proposal evaluation factors and weighting factors should emphasize lowest-cost solutions, because the Postal Service will have little brand preference for the products and services in this quadrant and can choose from many options and many sources.
The strategic approach regarding Quadrant IV calls for maximizing commercial advantage. This can be achieved by concentrating and centralizing business by aggregating organizational spend. The emphasis of the proposal evaluation factors and weighting factors should be on products or services at the leading edge of capabilities and innovation.
