Difference between revisions of "Kraljic Matrix"
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| − | ''' | + | == What is the Kraljic Matrix? == |
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| + | The Kraljic Matrix is a tool used in supply chain management to analyze the purchasing portfolio of a company. It was developed by Peter Kraljic in 1983 and is based on the idea that a company's purchasing activities can be classified into four categories based on the relationship between the importance of the item being purchased and the supplier's relative power. | ||
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| + | The four categories of the Kraljic Matrix are: | ||
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| + | #Strategic items: These are items that are critical to the company's operations and for which there are few alternative suppliers. These items should be managed closely and may require a higher level of collaboration with suppliers. | ||
| + | #Leverage items: These are items that are not critical to the company's operations but for which there are few alternative suppliers. These items should be managed to maximize cost savings and negotiate favorable terms with suppliers. | ||
| + | #Bottleneck items: These are items that are critical to the company's operations but for which there are many alternative suppliers. These items should be managed to ensure a stable and reliable supply and to mitigate risk. | ||
| + | #Non-critical items: These are items that are not critical to the company's operations and for which there are many alternative suppliers. These items should be managed for efficiency and to minimize cost. | ||
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| + | The Kraljic Matrix helps companies prioritize their purchasing activities and develop strategies for managing their relationships with suppliers. It can also help companies identify opportunities for cost savings and risk management in their [[Supply Chain Architecture Life Cycle (SCALe)]] | ||
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| + | ==See Also== | ||
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| + | ==References== | ||
| + | <references /> | ||
Revision as of 14:59, 28 December 2022
What is the Kraljic Matrix?
The Kraljic Matrix is a tool used in supply chain management to analyze the purchasing portfolio of a company. It was developed by Peter Kraljic in 1983 and is based on the idea that a company's purchasing activities can be classified into four categories based on the relationship between the importance of the item being purchased and the supplier's relative power.
The four categories of the Kraljic Matrix are:
- Strategic items: These are items that are critical to the company's operations and for which there are few alternative suppliers. These items should be managed closely and may require a higher level of collaboration with suppliers.
- Leverage items: These are items that are not critical to the company's operations but for which there are few alternative suppliers. These items should be managed to maximize cost savings and negotiate favorable terms with suppliers.
- Bottleneck items: These are items that are critical to the company's operations but for which there are many alternative suppliers. These items should be managed to ensure a stable and reliable supply and to mitigate risk.
- Non-critical items: These are items that are not critical to the company's operations and for which there are many alternative suppliers. These items should be managed for efficiency and to minimize cost.
The Kraljic Matrix helps companies prioritize their purchasing activities and develop strategies for managing their relationships with suppliers. It can also help companies identify opportunities for cost savings and risk management in their Supply Chain Architecture Life Cycle (SCALe)