In supplier management, what quadrant would you place a supplier who provides minimal value but is still necessary?

In supplier management, categorizing suppliers into different quadrants helps organizations strategize their approach to managing these relationships based on the value that each supplier provides. A supplier who provides minimal value but is still necessary fits into the "Nuisance" quadrant.

This categorization indicates that while the supplier is essential for certain operations or supplies, they do not contribute significantly to the overall performance or value creation for the organization. This situation often leads to challenges in management, as resources might be spent on maintaining the relationship without yielding sufficient returns.

The "Nuisance" quadrant typically involves monitoring and maintaining the supplier relationship to ensure continuity of supply while potentially exploring alternatives or ways to reduce dependency on that supplier. In contrast, suppliers in other quadrants, like "Core," provide high value and are crucial to the business's success, whereas the "Development" quadrant comprises suppliers with potential for growth, and "Exploit" includes those that provide high value but are easily substituted.

Understanding where a supplier falls in the quadrants helps organizations prioritize their resources and efforts effectively.