Kraljic Matrix

... No company can allow purchasing to lag behind other departments in acknowledging and adjusting to worldwide environmental and economic changes. Such an attitude is not only obsolete but also costly (Kraljic)

Information about Kraljic Matrix

Kraljic (1983) 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. His 2x2 matrix is set out to provide companies with a way to distinguish between different types of purchasing strategies which maximise buying power while minimising supply risks. It represents 'supply risk' (horizontal axis) and 'profit impact' (vertical axis) and offers four product classification quadrants (Caniels and Gelderman, 2005).

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