This template, an Excel file, gives you an easy and automated way to generate a Kraljic page for your spend categories. You simply assign scores and answer a few quick supplier market-related questions for each of your categories. The template will auto-populate the spend segmentation based on these inputs to give you visually compelling and insightful data that you can use in your presentations, reports, and discussions.
Who is this template for?
This matrix template is for procurement professionals and procurement managers who want to segment their spend categories into strategic, leverage, bottleneck, and non-critical items.
Peter Kraljic created the Kraljic Matrix in 1983 to help buyers manage their resources more intelligently. Irrespective of its age, the matrix still fits relevant to procurement as ever. Although this classic two-by-two matrix appears simple to many professionals, not applying it accurately leads to defective supplier management strategies.
Profitability is directly proportional to the impact of a supply item upon the bottom line. Spend has various categories; while some categories marginally affect the profit, others carry the potential to define your business' success or failure.
Classifying spend based on the dimensions of complexity in the supplier market and significance for your company yields a matrix that helps you make fact-based and distinct sourcing strategies and mitigate supply chain risks.
This template enables you to develop tailored procurement strategies for commodities ranked based on their risk exposure and procurement potential.
Following this categorization, you can easily identify the type of relationship you should consider building with your supplier and what levers to use to drive down procurement costs.