oboloo Glossary

Bottleneck Items In Procurement

oboloo Glossary

Bottleneck Items In Procurement

Bottleneck items in procurement refer to goods and services that are critical to a company’s operations and are limited in supply. In other words, they are items that are in high demand but have a limited availability. These goods and services can range from raw materials to industrial machinery, and can have a significant impact on a company’s operational efficiency. The official business definition of bottleneck items in procurement is that they are items whose supply is constrained and which, when unavailable, can cause a significant disruption in the company’s operations. Bottleneck items can be identified through various analyses, such as bottleneck analysis and inventory analysis. It is important to identify and manage these items to reduce their impact on the company’s profitability and sustainability. In order to do so, companies need to have a clear understanding of their procurement process and the items they rely on. They must also be aware