Commodity positioning, a crucial facet of the landscape assessment stage, involves the strategic grouping or categorisation of goods and services by sourcing specialists. This process entails identifying clusters with shared supply and demand drivers and suppliers. For instance, a "chair" is designated as a "good," while "furniture" represents the overarching procurement category or commodity group. Importantly, a commodity group can encompass multiple procurements, varying in size and type across different organisations and supply markets.
The ultimate goal of this categorisation is to achieve optimal grouping of similar goods or services, uniting them based on common supply processes, internal uses, specifications, technology, and supply and demand drivers. This methodical grouping relies on the inherent characteristics and similarities among commodities, ensuring a strategic alignment that enhances efficiency and effectiveness in procurement processes.
