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Kraljic Matrix makes it easy to manage your companys inventory. When considering what items are needed, the matrix is based on two factors: supply risk (rarity level) and financial risk (cost). The most difficult positions to achieve are positions with high supply risk and high financial risk; those with low supply risk and low financial risk are the easiest to acquire. HIGH RISK DELIVERY; LOW FINANCIAL RISK Contains elements that are rare but do not burden the company financially. HIGH RISK DELIVERY; HIGH FINANCIAL RISK Contains elements that are insufficient and financially burdensome for the company. LOW RISK DELIVERY; LOW FINANCIAL RISK Contains elements that are easily available and do not burden the company financially. LOW RISK DELIVERY; HIGH FINANCIAL RISK Contains items that are easy to obtain but cost the company financially. If certain items are required for the successful operation of the business, an inventory management method is required. Some items are easy to get, but sometimes you have to search for a rare item and spend an exorbitant amount of money to get it. The Kraljic Matrix takes these factors into account and provides the user with a useful method to categorize as needed. Items with high supply risk and low financial risk are those that are difficult to obtain but not expensive. These can be specialized items that are not produced in large quantities, or items that are extremely popular and therefore difficult to obtain. Commodities associated with high supply risk and high financial risk are difficult to obtain and expensive. These can be items like gold or other precious metals - these are the most difficult to obtain. Items with low supply risk and low financial risk are those that are easy to obtain and inexpensive. These items are plentiful and relatively cheap - the easiest way to get them. Items that have low supply risk and high financial risk are those thatreadily available and expensive. It can be machines and systems. KRALJIC MATRIX IN PRIORITY MATRIX You can add the Kraljic matrix to your priority matrix in no time: Watch the Kraljic matrix video: Product registration and analysis Record any product or material that is important to your purchasing process. This is the first step in evaluating them based on their impact on your companys bottom line and non-delivery risk. Kraljic Matrix Overview See how many products automatically fit into each of the 4 Kraljic Matrix classifications: Critical, Bottleneck, Leverage and Strategic. were filled. Matice Kraljic by product or material Select a product or material from the table and see what your rating is automatically, what reviews are displayed for it and where it is located in Matice Kraljic Matice Kraljic - Excel spreadsheet template Thank you! Your post has been accepted! Huh! An error occurred while submitting the form. Note: A more complete file, a new updated version, can be found here. The Kraljic Portfolio Acquisition Model was developed by Peter Kraljic and first appeared in the Harvard Business Review in 1983. Despite its age, it is a popular and useful model used by companies around the world. The aim is to help buyers maximize security of supply and reduce costs by making the most of their purchasing power. In this way, purchasing changes from a transactional activity to a strategic activity – because, as Kraljic said, purchasing must become supply management. Kraljics portfolio purchasing model helps buyers understand where their products stand in terms of supply risk and return on investment, and whether the balance of power rests with them or their suppliers. Once you know that, you can choose onebuying strategy. This tool is designed for buyers, purchasing managers to visualize the risk and profitability of a seller or supplier. This file provides a clean, automatic way to generate a Kraljic page for each product group or each retailer. Just enter your risk and return values. The Excel file calculates the impact - low, medium, high - and moves the dot on the graph to give you a visual overview of where the actual product or supplier is in Kraljic. This file is perfect for visual management, presentations, reports... If you are interested in this file, you can buy it by clicking This file is 37% cheaper. Actual price $5. A download link will be sent to you after purchase. 1. Comment on this article (below) say YES.2. Go to this page and enter your email address to download. Once we confirm youve completed both tasks, well send you a download link. Dont worry, this is an automatic process so it should take less than 5 minutes. Optional: Share this article and help us spread the word! Ignite Procurement - Simplified Strategic Procurement Ignite Procurement is a Norwegian SaaS company that facilitates data-driven, smarter and sustainable purchasing decisions with a best-in-class spend management solution. Want to know more? Check out our website to see how our expense management solution can help you make strategic purchases. PS. Be sure to follow us on Linkedin for future strategic purchasing updates, tips and tricks. Acquisition.