Kraljic Matrix (PowerPoint PPTX)

DESCRIPTION

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.

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Source: Best Practices in Supply Chain Management, Procurement, Sourcing Strategy PowerPoint Slides: Kraljic Matrix PowerPoint (PPTX) Presentation, LearnPPT Consulting