Kraljic’s Supply Matrix

• Top right quadrant:

• Strategic items where supply risk and impact on profit are
high
• Highest impact on customer experience
• Price is a large portion of the system cost
• Typically have a single supplier
• Focus on long-term partnerships with suppliers
• Bottom right quadrant
• Items with high impact on profit
• Low supply risk (leverage items)
• Many suppliers
• Small percentage of cost savings will have a large impact on
bottom line
• Focus on cost reduction by competition between suppliers