This website makes use of cookies to enhance browsing experience and provide additional functionality. This quadrant normally contains high-value items such as precious metals with limited, or even a single supplier. Your email address will not be published. We will explain what the Kraljic Matrix or the supply chain portfolio matrix is and how to use 7 Kraljic Models to improve various functions across the supply chain. When agreement has been reached about the position of the products within the Kraljic portfolio purchasing model, it can be determined which actions need to be taken to achieve a better positioning. These types of products are purchased from one supplier. What are your success factors for the good purchase strategy?

Uploader:	Faegis
Date Added:	3 December 2005
File Size:	37.42 Mb
Operating Systems:	Windows NT/2000/XP/2003/2003/7/8/10 MacOS 10/X
Downloads:	33137
Price:	Free* [*Free Regsitration Required]

How to cite this article: Profit impact This is defined from low to high. Bottleneck items Low profit impact and high supply risk These items do not represent a high value but they are a vulnerable factor in the entire supply chain.

The Kraljic Matrix helps us develop a purchasing strategy for the products and services our organization consumes. This article explains the kraljic portfolio purchasing model in a practical way. These types of products kra,jic the least problems with respect to kraljjc performance. Steps in the purchasing process Peter Kraljic recommends the following steps in the entire purchasing process: By increasing product standardisation, much time and money can be saved.

Kraljic Portfolio Purchasing Model

These items have a large financial impact on our organization. Ben Benjabutr is the author and editor of SupplyChainOpz. By concluding good framework agreements and drawing up targeted pricing, the relationship between the company and the supplier continues to be in harmony. Peter Kraljic distinguishes four types of product categories in kraljiv two dimensions:. Product categories Peter Kraljic distinguishes four types of product categories in these two dimensions: What is the Kraljic Matrix?

The Kraljic Matrix allows us to work in a smarter way with those suppliers krljic already have.

This quadrant normally contains high-value items such as precious metals with limited, or even a single supplier. Strategic Items These items have a large financial impact on our organization. Supply risk This is also defined from high to low. Using the Kraljic kealjic purchasing model, an organization can professionalize and improve its purchasing performance which may produce considerable cost savings. He holds an M. Voluntary supply chain security program impacts: 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 Kraljic Matrix | How to Optimize Purchasing Costs and Risks

It aims to remove supply vulnerability as much as possible and maximize our potential buying power. In the balance of power between the company and the supplier, the company is the dominant factor. Strategic items High profit impact and high supply risk These kralljic of products are purchased from one supplier. Your rating is more than welcome or share this article via Social media! In that case, discussions must be had with the supplier and new supply terms and conditions should be drawn up.

Bottleneck Items These are items that have a low financial impact on our organization, however, there is a high supply risk. Raw materials determine to a large extent the value of the cost price of the finished product.

This matrix helps a company kraljix an insight into the working methods of the purchasing department and how they spend their time on various products. In order to avoid unnecessary risks, it is important to spread the goods across the four quadrants. This prevents obsolescent stock and excess supplies and this leads to cost reduction.