kraljic matrix

The Kraljic Model can be used to analyze the purchasing portfolio of a company and thus support decisions and actions regarding the purchase of raw materials and products . The model's clear strength is that it relatively simple leads us to a useful procurement strategy .

Peter Kraljic’s model was first described in the Harvard Business Review, September-October edition 1983. The title of the article was " Purchasing must become Supply Management " . Peter Kraljic was for 30 years a senior executive at McKinsey & Company in Germany , where he worked with clients in areas such as chemicals- , pharmaceutical and automotive industries.

Section
0:00 Introduction of author and the purpose of the model
0:50 The structure of the model and two important dimensions
2:43 Four categories
3:07 Non critical items - Efficiency
4:19 Leverage items - Low price
5:07 Bottleneck items - Contracts
6:22 Strategic items - Form partnerships
7:35 A review of an example - Automotive industry
10:20 Criticism of the model

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