Kraljic Matrix

The Kraljic Matrix is a strategic tool that helps companies manage their purchasing by categorizing suppliers and products based on two factors: profit impact and supply risk. It divides items into four groups: strategic (high impact, high risk), leverage (high impact, low risk), critical (low impact, high risk), and routine (low impact, low risk). This helps companies decide how to approach each category—whether to build strong partnerships, negotiate better deals, ensure supply security, or buy routinely—ultimately optimizing procurement strategies for better efficiency and competitiveness.