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CIPS L5M6 Exam - Topic 1 Question 20 Discussion

In Category Management, which of the following Models can be used for creating a step-by-step plan for Strategic Sourcing?
D) Kearney's 7 Step Model
A) Kraljic Matrix
B) The Pareto Principle
C) Porter's 5 Forces

CIPS L5M6 Exam - Topic 1 Question 20 Discussion

Actual exam question for CIPS's L5M6 exam
Question #: 20
Topic #: 1
[All L5M6 Questions]

In Category Management, which of the following Models can be used for creating a step-by-step plan for Strategic Sourcing?

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Suggested Answer: D

Kearney's 7 Step Strategic Sourcing Model provides a structured, step-by-step approach for managing sourcing activities. The steps include profiling the category, assessing the supply market, developing sourcing strategies, and implementing them. This model ensures that sourcing is systematic, evidence-based, and aligned with strategic objectives. Unlike tools such as the Kraljic Matrix, which classifies items by risk and impact, Kearney's model provides an end-to-end process framework for sourcing execution. Similarly, Pareto and Porter's 5 Forces are useful analytical tools but not procedural sourcing frameworks. For category managers, the Kearney Model is valuable because it emphasises cross-functional collaboration, data-driven decision-making, and continuous improvement. Its structured approach reduces risks of ad-hoc decision-making and ensures alignment with organisational goals. This is why it is a central feature of L5M6 study material and often tested in exams.


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Carole
1 day ago
The Pareto Principle sounds familiar, but I feel like it’s more about prioritizing rather than a step-by-step plan.
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Jill
6 days ago
I remember practicing with the Kearney's 7 Step Model in our case studies, but I can't recall if it was specifically for strategic sourcing or something else.
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Lawrence
11 days ago
I think the Kraljic Matrix is definitely one of the models we discussed for strategic sourcing, but I'm not entirely sure if it's the only one.
upvoted 0 times
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