ABSTRACT
The Sourcing Gemstone was developed in 2001 by the consultancy AT Kearney as a tool to help determine the most appropriate sourcing strategy for any purchase. It offers an alternative to the Kraljic Matrix without all of the complexities and inconsistencies of the Purchasing Chessboard and offers six broad strategies for purchasers to consider. These are volume concentration, best-price evaluation, global sourcing, product specification improvement, joint process improvement, and relationship restructuring. The Sourcing Gemstone has served its purpose well in the development of ‘strategic procurement’ with a modern twist on the Kraljic Matrix. The strategies for exercising power are based on the adoption of competitive leverage over the market, where the buyer can exert their economic power to exploit commercial opportunities. Although the Sourcing Gemstone provides a range of strategic sourcing options, it does not provide an effective methodology for how to make the right choice.
