Kraljic’s Matrix

Better Manage Your Supply Chain

Use this visual framework to segment your vendor base and manage supplier relationships based on risk and profitability.

  • Customizable Krajlic matrix templates to segment suppliers into various categories
  • Real-time collaboration to ideate with multiple stakeholders to conduct a detailed analysis
  • Multiple export options for printing, sharing, presentations, and documenting your supply chain management strategy
Kraljic’s Matrix
Intel
Netflix
Nasa
City
Facebook
National Geographic
Paypal
Amazon
Ebay
Amex
Master Your Procurement Strategy
VISUALIZE

Master Your Procurement Strategy

Master Your Procurement Strategy

Infinite canvas to conduct detailed vendor segmentation.

Multiple frameworks to categorize your supply chain into leverage items, noncritical items, and bottle next items.

Drag and drop functionality to easily group various supply chain elements into relevant quadrants.

Freehand drawing and highlights to quickly make notes and add details for easier understanding.

COLLABORATION

Run Collaborative Procurement Management Sessions

Run Collaborative Procurement Management Sessions

In-app video conferencing to communicate with multiple stakeholders to develop a better understanding of your vendor segmentation.

Real-time cursors for any number of participants on a shared workspace to improve cross-functional team engagement.

Full comment threads to review and share feedback and suggestions.

Advanced folder structure to easily document findings and create an easy-to-access reference point for the purchasing team.

Run Collaborative Procurement Management Sessions
Establish Clear Purchase Guidelines
CAPTURE & EXTEND

Establish Clear Purchase Guidelines

Establish Clear Purchase Guidelines

Doc links and attachments to easily add relevant information to the canvas while creating Krajlic’s matrix.

Connect to multiple frameworks to prioritize efforts while executing your product procurement strategy.

Integrates into multiple tools. Connect to project management tools and effortlessly manage your supply chain from start to finish.

What Is a Krajlic’s Matrix?

The Kraljic matrix is a method for classifying and analyzing the purchasing portfolio in order to guide the procurement strategy of companies. It is a tool for managing item categories for a company in relation to the market.

How to Use the Krajlic’s Matrix?

  • Begin by opening a Creately workspace, select a Krajlic matrix and invite key stakeholders to the canvas.
  • Identify the items that the procurement department must obtain and list them into the following categories:
  • Non-critical items: These items are low risk and have a low impact on organizational profitability. The most commonly used example in this segment is office stationery. Although important for employees to perform their duties, pens and paper do not have a significant impact upon the business, nor does their absence represent a serious threat.
  • Leverage items: Where items have high profitability, but a low-risk factor, buyers possess the balance of power in the relationship and leverage this strength to obtain greater returns. Traditionally, procurement professionals have exploited this status to lower prices.
  • Strategic purchases: The company’s operations depend on these purchases. These are often rare or unique resources, in other words, high-stake purchases for the company. Here, for example, it becomes essential to develop supplier partnerships (e.g. through the adoption of SRM software) to analyze the market and to consider vertical integration.
  • Bottlenecks: These purchases have a low business risk but suffer from a limited market (small number of suppliers).