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Map your purchases with the Kraljic matrix

Kraljic matrix has become an indispensable tool in the buyer’s toolbox. It is a representation of the company’s purchasing portfolio. It compares two dimensions: the strategic importance of the purchasing family in terms of value and the complexity of the supplier market.
Kraljic

Why use the Kraljic matrix?

Simply because it is an essential tool for the buyer to map the purchases, it allows to identify the:

  • Threats to resource availability and scarcity of raw materials,
  • Political turbulence and government intervention in the markets,
  • Intensified competition,
  • Acceleration of technical change.

Y-axis: :
This is the simplest to define. It directly impacts profit. In practice, we advise you to use the amounts spent and the importance of the item in the final product. You will decide where to place the cursor depending on your portfolio.

X-axis:
It requires more analytical work, as you will need to determine the portfolio’s complexity and risk factors, i.e. qualitative criteria subject to discernment.

This method of classifying the purchasing portfolio enables you to identify the strategic weight of the different purchasing families in order to adapt your purchasing strategy.

 

Mapping purchases with the Kraljic matrix

1

Representation of the company’s purchasing portfolio.

2

Paralleling the strategic importance of the purchasing family and the complexity of the supplier market.

3

Obtaining information by subsidiaries, suppliers or purchasing families.

Your tool to have a global vision on your purchasing families