The Kraljic Matrix

The Kraljic Matrix is a strategic tool used in supply chain management to help businesses categorize their purchasing items based on two key factors: the complexity of supply risk and the importance of the item to the company's profitability. It divides items into four categories: strategic, leverage, bottleneck, and non-critical. By analyzing items this way, businesses can develop tailored strategies for sourcing, ensuring they focus efforts where they are most needed—mitigating risks for critical items while maximizing savings on less important ones. This approach supports effective resource management and supplier relationships.