Kraljic Portfolio Purchasing Model

The Kraljic Portfolio Purchasing Model helps companies manage their purchases strategically by identifying which supplies are most important and how risky they are to the business. It divides purchases into four categories based on profit impact and supply risk: non-critical items, leverage items, bottleneck items, and strategic items. This allows companies to decide the best approach—such as efficient buying, forming strong supplier relationships, or securing unique resources—to minimize costs and disruptions while maximizing value and stability.