Kraljic's paper introduced this famous 2x2 supplier segmentation matrix of spend category importance of the spend category vs its supply market complexity - and the resultant quadrants of leverage, strategic, bottleneck and non-critical. Stockholm school of economics department of marketing and strategy master thesis forth period 2008 how purchasing practitioners use the kraljic matrix. The kraljic matrix has been largely used in many different industries as an efficient tool for developing differentiated purchasing strategies however, its application on construction industry is unknown, as well as the lack of systematical. Kraljic's purchasing portfolio model, which was introduced in 1983, still is the dominant approach in the profession contrary to the growing use of the kraljic matrix, there are problems and. The third step is to develop a procurement profile that identifies past and projected procurement expenditure and associated levels of risk in form of a matrix finally, appropriate strategies can be developed for each of the categories of this procurement profile.
Kraljic purchasing portfolio matrix dr kraljic's answer to the question can be paraphrased as that although there is no single best way, but if we know which product category we are purchasing, there would be a best way to do the purchasing for this product category. Comparing strategies aimed at moving towards other positions in the kraljic matrix (scenarios 3, 5, 7 and 8) with strategies aimed at maintaining the current position (scenarios 1, 2, 4, 6 and 9) leads to the following conclusions. By supplychainopz supply chain segmentation is the process that links a corporate strategy to the executions this article will show you kraljic matrix concept or a simple 2x2 matrix (portfolio.
In the 1983 article, kraljic first presents the four-box and related guidance and then says: next the company positions the materials identified in phase 1 as 'strategic' in the purchasing portfolio matrix. Matrix are to be pursued through the implementation of a recommended purchasing strategy (gelderman, 2000) the general strategic recommendations, as provided by kraljic, should be elaborated and tailored in. Kraljic's portfolio matrix figure 1 each of the four categories of commodities in the kpm requires a different assess their own purchasing strategies. How purchasing liverpool practitioners use the kraljic matrixstockholm school of economics:departement of listone, harold a, turrof, murray, the delphy marketing strategy method-techniques and aplication, 2002 gelderman dan weele, 2003 handling mirahmadi dan teimoury,2012.
Kraljic's purchasing portfolio approach has inspired many academics to undertake further research into purchasing portfolio models refined models typically recommend one purchasing strategy for. A new approach to purchasing portfolio modelling, stemming from kraljic's matrix, for developing purchasing strategies that are aligned with competitive priorities, is developed to address the weaknesses of existing approaches that are preventing. Purchasing managers used the kraljic matrix for formulating purchasing strategies  no less than 80% of industrial companies that operate on a mass production basis use it. Purchaing strategies in the kraljic matrix gpsm (kraljic) what is kraljics matrix and how can products be moved from one part of the matrix to the otherintro: it is the first comprehensive purchasing model introduced by kraljic (1983. Purchasing must become supply selling: how managers can guard against materials disruptions by formulating a strategy for supply (by peter kraljic, harvard business review, september 1983.
Consultants in strategy/purchasing & supply management, and currently heading his own consultancy firm praxis, active in the field of purchasing howard is a practitioner with a. 33 elaboration of purchasing strategies for all categories 75 41 rotating the kraljic-matrix: new perspectives 107 a portfolio approach to the development. Gelderman / journal of purchasing & supply management 11 (2005) 141-155 153 table 11 description of the scenarios corresponding to the purchasing strategies quadrant in the purchasing strategy/ scenario description kraljic matrix scenario strategic 1.
Developing differentiated negotiation strategies benefits such an approach provides a clear framework for buyers to select a scenario appropriate negotiation strategy, choosing to adopt either a distributive or integrative approach. The kraljic model can be used to analyze the purchasing portfolio of a company and thus support decisions and actions regarding the purchase of raw materials and products. The kraljic portfolio purchasing modelassessing risk and maximizing profits find this pin and more on consulting by sefa mawuli this tool helps you develop the right long-term purchasing strategy.