Skip Ribbon Commands
Skip to main content
Sign In

2A(3.3.3 )Supplier Differentiation Assessment
Strategic Sourcing Framework

Description

The process of Supplier Differentiation Assessment is done during Stage 3 of the Sourcing Strategy Development phase as part of 
analysing external stakeholder information. Supplier differentiation is used to assess how much importance suppliers place upon 
government’s business and to understand how suppliers view governments business and how they behave as a result.
Together with other assessments, such as supply chain analysis, supply market analysis, and identifying potential suppliers, 
one would get a well- rounded view of the external factors that may impact on an organisation’s procurement decision making process.
Objective:
  • To assess how much importance suppliers place upon government’s business and to understand how suppliers view governments business and how they behave as a result.
Output:
  • Supplier’s perception of Government’s account and strategies to engage with suppliers

WHAT IS SUPPLIER DIFFERENTIATION ASSESSMENT
Supplier Differentiation Assessment is done in order to assess how much importance the supplier places upon the customer’s 
business and adds another dimension to the results of the Portfolio Analysis. By understanding government’s value to suppliers, 
different strategies can be developed based on the willingness or reluctance of suppliers to meet government’s needs.
This analysis may identify changes the government department may need to make in order to be seen as a more attractive customer
If this happens, there will be more competition amongst suppliers to get your business. It is important that you accurately gauge 
your value as a customer to suppliers as this will determine the extent to which you can influence a market and achieve better procurement outcomes.
While the previous market analysis tools looked at how the market functions, this piece of analysis attempts to “walk in the suppliers shoes” 
and understand how suppliers view governments business and how they behave as a result.
The model can be used in two ways:
  • As a diagnostic tool, assessing current supplier relationships and the associated strengths, weaknesses, opportunities and threats;
  • As a decision support tool, assessing the likely position of future/potential suppliers.

See related topics and documents
  
  
2A(3.3.3) SPF GPG  - Supplier Differentiation Assessment.docx