Kraljic Matrix

Definition: Kraljic Matrix is a tool for analyzing the purchasing portfolio of a firm and to support corresponding decisions and actions regarding purchasing of commodities, products or a company.
It distinguishes 2 dimensions (Profit Impact and Supply Risk) and then arrives at 4 product categories:
- Leverage Items
- Strategic Items
- Non-critical Items
- Bottleneck Items
Depending on the category, appropriate purchasing strategies can be considered.

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More on procurement and purchasing: Buygrid Framework, Modified Rebuy, Post Purchase Behavior.

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