Kraljic’s Supply Matrix

• Top left quadrant:

• High supply risk but low profit impact items.
• Bottleneck components
• Do not contribute a large portion of the product cost
• Suppliers have power position
• Ensure continuous supply, even possibly at a premium cost
• Focus on long-term contracts or by carrying stock (or both)
• Bottom left quadrant:
• Non-critical items
• Simplify and automate the procurement process as much
as possible
• Use a decentralized procurement policy with no formal
requisition and approval process