This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Download the Kraljic Matrix PPTX to analyze procurement strategies and supplier positioning. Get a ready-to-use template for effective supply risk and profit impact assessment. Kraljic Matrix is a 29-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.
The Purchasing function in most organizations deserves more attention than it is given.
Most executives associated with Procurement lack the competencies and perspectives required to identify gaps and effectively manage the function. This paucity of attention and incompetence is a certain path to extinction in this age of abrupt supply and demand shifts, intense competition, raw materials and resources running down, and political turmoil.
There are 2 key factors critical for devising a robust Supply Strategy:
1. Strategic importance of Purchasing – This factor measures the ratio of raw material costs to total costs, their impact on profitability, and the value addition done by the entire product portfolio.
2. Complexity of the Supply Chain – This factor measures the sophistication level of the Supply Chain in terms of supply insufficiency, technological disruption, barriers to entry, distribution costs, and dominance of market players.
What's needed in this era is an inclusive, long-term Purchasing and Supply Management Strategy. The Kraljic Matrix presents an objective methodology to identify supply bottlenecks, threats, and flaws.
This presentation provides a detailed overview of the Kraljic Matrix, a framework to assist in categorizing and analyzing an organization's Purchasing function, critical to inform its Procurement Strategy. The Kraljic Matrix is a strategic tool designed to help companies optimize their Procurement and Supply Chain decisions by categorizing products based on their importance and supply market complexities.
Developed by Peter Kraljic in the 1980s, the matrix classifies products into 4 distinct categories. Each category suggests different Procurement Strategies to manage risks and leverage opportunities.
By understanding where a product falls within the matrix, buyers can better navigate challenges such as abrupt technology disruptions, economic instability, and changing regulatory and environmental contexts, ultimately ensuring supply continuity and maximizing value. This methodical approach aids organizations in building more resilient and efficient Supply Chains.
Implementation of the Kraljic Matrix involves a 4-stage process:
1. Purchasing Portfolio Classification
2. Market Analysis
3. Positioning of Strategic Items
4. The Action Plan
This presentation also discusses each of these stages in depth.
This PowerPoint presentation on Kraljic Matrix also includes some slide templates for you to use in your own business presentations.
The Kraljic Matrix is a structured approach for supply chain management, consisting of 4 essential stages. The first stage, Purchasing Portfolio Classification, organizes procurement items like raw materials and components, assessing their impact on profitability and supply chain risks. The second stage, Market Analysis, evaluates the supplier market based on criteria necessary for acquiring materials, crucial for understanding market dynamics and identifying potential suppliers. The third stage, Positioning of Strategic Items, determines the strategic importance of purchases based on market analysis insights, prioritizing items for strategic sourcing. The final stage, The Action Plan, evaluates bottlenecks, identifies improvement areas, and selects sourcing strategies to optimize the procurement portfolio. This matrix guides organizations in enhancing procurement strategies and improving supply chain resilience.
The Kraljic Matrix is a strategic procurement tool that classifies purchases based on profit impact and risk/complexity. It features 4 categories:
1. Leveraged Purchases (high profit impact, low risk) involve multiple suppliers, enabling cost reduction and value maximization through effective supplier management.
2. Strategic Purchases (high profit impact, high risk) are critical for success and require strong supplier relationships to mitigate risks and ensure supply continuity.
3. Non-critical Purchases (low profit impact, low risk) can be procured easily and should focus on streamlining processes to reduce administrative costs.
4. Bottleneck Purchases (high risk, low profit impact) have limited suppliers, necessitating risk management strategies to secure supply and avoid disruptions.
The Kraljic Matrix aids organizations in categorizing procurement items for informed decision-making and resource allocation.
The Kraljic Purchasing Matrix categorizes purchases into Leveraged Purchases and Non-critical Purchases. Leveraged Purchases significantly impact operations and are easy to procure, allowing organizations to enhance their position through multiple suppliers, better negotiations, and alternative options. This strategic procurement emphasizes supplier relationships and negotiation tactics. Non-critical Purchases have minimal operational effects, are low-risk, and readily available, exemplified by office supplies. Their straightforward procurement process enables organizations to manage these purchases with less complexity. Strategies for Non-critical Purchases include streamlining procurement, product rationalization, and decentralized purchasing, focusing on efficiency and cost management. Each purchasing category requires distinct procurement strategies to optimize purchasing aligned with operational needs.
Organizations must optimize purchasing strategies for long-term supply security and short-term gains. A thorough examination of supply scenarios is essential, defining associated risks, costs, returns, and strategic implications. Developing a preferred supply option requires leadership approval and specific goals. When suppliers hold more power, consolidating purchases with a single supplier can effectively manage costs, even if it means accepting higher prices to meet volume requirements. Conversely, if the organization has a stronger position, diversifying sources can leverage multiple suppliers for better pricing opportunities, reduce inventory levels, and enhance purchasing strategies. In-house production may also mitigate risks associated with reliance on a single supplier. These insights are vital for enhancing procurement strategies and achieving cost savings.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
For $10.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
ABOUT FLEVYPRO
This document is part of the FlevyPro Library, a curated knowledge base of documents for our FlevyPro subscribers.
FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Trusted by over 10,000+ Client Organizations
Since 2012, we have provided business templates to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
Read Customer Testimonials
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I
saved. I encountered a download issue during the ordering process. However, a quick email to Flevy's support team, even on a Sunday (!!!), resulted in assistance within less than an hour, allowing me to download the content I needed. Fantastic job, Flevy! I give 5 stars for both content/price and customer service. Thank you!
"
– M. E., Chief Commercial Officer, International Logistics Service Provider
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."
– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
"One of the great discoveries that I have made for my business is the Flevy library of training materials.
As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy
It is well worth the money to purchase these presentations. Sure, I have the knowledge and information to make my point. It is another thing to create a presentation that captures what I want to say. Flevy has saved me countless hours of preparation time that is much better spent with implementation that will actually save money for my clients.
"
– Ed Kemmerling, Senior Lean Transformation Expert at PMG
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The
quality of the decks available allows me to punch way above my weight – it's like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.
"
– Roderick Cameron, Founding Partner at SGFE Ltd
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."
– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact
that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world.
"
– Roberto Pelliccia, Senior Executive in International Hospitality
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"
– Debbi Saffo, President at The NiKhar Group
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.
Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I
have been able to exceed expectations and deliver quality advice and solutions to my clients. The quality and expertise of the authors are exemplary and gives me great confidence to use as part of my service offerings.
I highly recommend this company for any consultant wanting to apply international best practice standards in their service offerings.
"
– Nishi Singh, Strategist and MD at NSP Consultants
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.
Click main image to view in full screen.
