Q(1). Volvo Logistics used a three-step purchasing approach. Identify analogous three-step approaches (portfolio models) from the literature (i.e. journal articles). These approaches may be in a slightly different set up. Evaluate the current case with that of the reported approached in journal articles. What are the similarities and differences you have found when comparing the current case with that of the reported literature?


Q(2). Discuss the impact on the Volvo Logistics company’s purchasing strategies if commodities are wrongly placed in different quadrants of Kraljic matrix? Develop scenarios of wrongly placed commodities in the Kraljic matrix considering some realistic assumptions (the assumptions should be clearly identifiable). The developed scenarios should be analysed in respect of their impact on the purchasing cost of Volvo Logistics. In this regard you may consult Fig. 3 (page # 254) of the following journal article:

Nudurupati, S.S., Bhattacharya, A., Lascelles, D. and Caton, N. (2015). ‘Strategic sourcing with multi-stakeholders through value co-creation: An evidence from global health care company’, International Journal of Production Economics, 166, pp. 248–257.

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