A Review On The Kraljic Portfolio - 1126 Words

The Kraljic portfolio approach has been called as the best step forward in the growth of professional purchasing. (Gelderman and van Weele, 2005) Purchasing portfolio models have been receiving more responsiveness in today’s time for the sake of specialised purchasing. A complete portfolio approach for professional purchasers was introduced by Peter Kraljic in 1983. Since the portfolio helps the buyers in having a wide range of suppliers it becomes easier for them to manage and chose the most profitable ones. The Kraljic portfolio is based on two different matrices. The first one categorizes firm’s purchased products (profit impact) and the other dimension being the supply risk involved in it. The values of both the dimensions can be high as well as low. To show the comparative position of the firm in the parallel supply market is the second dimension of kraljic’s matrix. Depending on the relationship of the buyer/seller following purchasing strategies can be followed: exploit, balance, and diversify. 1.1 Classification of Products Using Kraljic Matrix There are four different kinds of products classified by Kraljic that can be used by an organization. They are bottleneck items, strategic items, leverage items, and non-critical items. Bottleneck products are susceptible in nature in respect to their supply and as a result they have less effect on the financial outcomes of the firm. Suppliers are always in a strong position for such kind of products. Therefore, theShow MoreRelatedThe Future Role Of Procurement Of The Global Supply Chain2344 Words   |  10 Pagesdiscuss and critique of the role of purchasing in the global supply chain, an outline and discuss of three factors, such as, environment, technological, and practice, discussion and critical Kraljic Portfolio Matrix and Cox Model relationship needed to changes, outline the advantages and disadvantages of Kraljic Portfolio Matrix and Cox Model relationship with the procurement department, discuss the success factors come from the relationship between supplier and buyer is human resource, and recommendationsRead MoreRole Of Purchasing Portfolio Matrix And Cox Model Relationship2519 Words   |  11 PagesTable of Contents Introduction 3 The role of purchasing 3 The key factors 6 Kraljic Portfolio Matrix and Cox Model relationship. 8 The advantages and disadvantages 12 The success factors come from human resource 13 Conclusion and Recommendations 14 Bibliography 16 Table of figures Figure 1- the basic model of Porters Value Chain (Fao2001)..4 Figure 2 ? Purchasing portfolio matrix, (Bedey et al. 2008)....10 Figure 3- The Cox Model relationship (Btecexpert 2011)...11Read MoreSabor Internaional Case Study2127 Words   |  9 PagesIntroduction In this case study, we review Sabor’s current position with regards to its supply source of Macronil, the main component for its air filtration units. We evaluate this using the Karljic matrix and his 4-phase methodology (Kraljic, 1983) as our theoretical framework and analyze the options available to Sabor Inc. using the case information and data provided. We then conclude with our goal of offering viable recommendations to Sabor, given the constraints, to better Sabor’s purchasingRead MoreA Case Study of Dell Supply Chain Management4601 Words   |  19 Pagescomprehensive IT system. What the competitive advantages do they provide for the Dell and how do they interact with each other to make the supply chain more efficient? 3. Methodology There are some methods are used in our research. First is literature review which is basic knowledge about supply chain management. And analysis the information from the scientific articles to find related resources like bullwhip effect and supplier relationships. What’s more, collecting public data from related resourcesRead MoreManagement and Study Unit41787 Words   |  168 Pagesobjectives of purchasing and supply management illustrate and explain the importance of purchasing and supply management for business enterprises discuss each of the basic steps in the purchasing cycle outline the fundamental principles of the purchasing portfolio provide a broader perspective on supply chain management and logistics management identify the interface between purchasing and supply management and general business management describe the nature of purchasing and supply planning illustrate andRead MoreManagement and Study Unit41775 Words   |  168 Pagesobjectives of purchasing a nd supply management illustrate and explain the importance of purchasing and supply management for business enterprises discuss each of the basic steps in the purchasing cycle outline the fundamental principles of the purchasing portfolio provide a broader perspective on supply chain management and logistics management identify the interface between purchasing and supply management and general business management describe the nature of purchasing and supply planning illustrate and