Framework

Buyer–supplier power matrix

The question it answers

Before renegotiating with a key supplier, how can a purchasing manager tell whether buyer or supplier holds the power, and how should they act?

Origin
Cox (2001)
Diagram type
2×2 matrix
Level of analysis
Firm
Topics
Supply chain & operationsStrategy & leadership
Delivery lorry pulling a chain of linked glass boxes, icon for supply chain

Diagram

Buyer–supplier power matrix

LowBuyer powerHigh
Buyer dominance
Interdependence
Independence
Supplier dominanceHigh risk
LowSupplier powerHigh

Pitfalls

Pitfall

One side thinking only of itself can break the chain; use the power analysis to develop suppliers.

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Cox, A. (2001) ‘Understanding buyer and supplier power: a framework for procurement and supply competence’, Journal of Supply Chain Management, 37(1), pp. 8–15.doi:10.1111/j.1745-493X.2001.tb00094.xSource page