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.
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.
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.
