Kraljic Matrix: Key Purchasing Categories Explained PPT

This PPT slide, part of the 29-slide Kraljic Matrix PowerPoint presentation, presents an overview of the Kraljic Purchasing Matrix, specifically focusing on 2 of the 4 purchasing categories: Leveraged Purchases and Non-critical Purchases.

Leveraged Purchases are characterized by their significant impact on an organization’s operations, yet they are relatively easy to procure. This category allows for considerable maneuverability and profitability. The text suggests that organizations can enhance their position by leveraging the availability of multiple suppliers, engaging in better negotiations, and exploring alternative options. This indicates a strategic approach to procurement, emphasizing the importance of supplier relationships and negotiation tactics.

On the other hand, Non-critical Purchases are described as having minimal effect on the organization’s operations. These items are generally low-risk and readily available, with office supplies cited as a typical example. The procurement process for these items is straightforward, which implies that organizations can manage these purchases with less complexity. Strategies mentioned for handling Non-critical Purchases include streamlining procurement processes, product rationalization, and decentralized purchasing. This suggests a focus on efficiency and cost management, allowing organizations to allocate resources more effectively.

The slide concludes with a note that each purchasing category necessitates distinct strategies for procurement and supply maintenance. This highlights the importance of tailoring procurement approaches based on the specific characteristics and implications of each category, ensuring that organizations can optimize their purchasing strategies to align with operational needs.

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Cost Management