KRALJIC MATRIX PDF

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The Kraljic Matrix helps us develop a purchasing strategy for the products and services our organization consumes. It aims to remove supply vulnerability as. Kraljic Matrix, also known as Purchasing Portfolio Matrix or Supply Chain Portfolio Matrix, is a method developed by Peter Kraljic in It is used to create a. The Purchasing Portfolio Matrix [Kraljic ] Rys. 2. Key words: Purchasing, Kraljic-matrix, purchasing strategies, new concepts based on.

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Voluntary supply chain security program impacts: This will be a function of our past dealings with the supplier and their size. Thriving in a turbulent world: This step-by-step makes it easier to control stock management. In general, raw materials belong to this category. This matrix helps a company gain an insight into the working methods of the purchasing department and how they mafrix their time on various products. Add a link to this page on your website: Precondition is that each product or product group can be placed into the matrix.

Your rating is more than welcome or share this article via Social media! Kraljic suggested that purchasing in many companies is based on routine, transactional activities that afford little strategic consideration to potential economic and political disruptions to materials supplies. These are products that are matrrix for the production process but they are difficult to obtain.

Secondly, we need to develop plans to reduce our dependence on this supplier, by adapting our products and investigating alternative products and suppliers. It aims to remove supply vulnerability as much as possible and maximize our potential buying power. Supply risk This is also defined from high to low. These are items that have a low financial impact on our organization and are also in abundant supply, such as kraljiv supplies. Please enter your comment! Although these products are low impact and have an abundant supply, they are nevertheless interesting, because the cost of handling them can often outweigh the cost of the product itself.

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The purchasing strategy can be prepared for each part of the Kraljic portfolio purchasing model.

These types of products cause the least problems with respect to purchasing performance. Always up-to-date with our latest practical posts and updates?

The Kraljic Matrix | How to Optimize Purchasing Costs and Risks

The Kraljic Matrix allows us to work in a smarter way with those suppliers we already have. To what extent are the materials up-to-date and have the latest technology and materials substitutions been used? These items do not represent a high value but they are a ktaljic factor in the entire supply chain. Activity Log December 29, It does this by helping us determine, on a per product or per supplier basis, the type of relationship we should be fostering with each of our suppliers.

The power of supply chain segmentation. Just like kraljif items, these items have a large financial impact on our organization, however, the item is in abundant supply. What is the right supply chain for your product? What are the logistics costs and are there monopoly or oligopoly conditions?

Related concepts Supplier Segmentation The idea of supplier segmentation is pretty simple – grouping suppliers in a supply base by their impact on the business Rogers, By creating buffer stock of these scarce items and by finding alternative kralijc, a company can undermine this position. Because of their large financial impact, these items are important to the organization. These items are also scarce.

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The purchasing strategies we would typically use for these types of items include collaboration and strategic partnerships. In that case, discussions must be had with the supplier and new supply terms and conditions should be drawn up.

Kraljic Portfolio Purchasing Model

This website makes use of cookies to enhance browsing experience and provide additional functionality. Please enter your name here. The Kraljic Matrix helps us develop a purchasing strategy for the products and services our organization consumes. Please login here to Download PDF kb.

What is Kraljic Matrix or Supply Chain Portfolio Matrix?

Strategic Items These items have a large financial krxljic on our organization. Non-critical Items These are items that have a low financial impact on our organization and are also in abundant supply, such as office supplies. An example might be where we have a new supplier supplying a new technology.

Preferably, a product is placed only in one of the quadrants. Purchasing must become supply management. He holds an M. Henry Mintzberg Organizational Configurations December 18, The result is that purchasing professionals can prioritize buying activities based on profit impact and level of risks involved.

The Kraljic Matrix | How to Optimize Purchasing Costs and Risks

Not a CIPS member? If you truly want to develop a comprehensive supplier management strategy, then this is the area you should focus on first.

Peter Kraljic distinguishes four types of product categories in these two dimensions:. Kraljic Portfolio Purchasing Model4.