Kraljic Matrix

“Hero MotoCorp”
Group 20
Trisha Dhawe 2002253
Vedant Saraf 2002260
Shubham Rathi 2002219
Vikrant Yadav 2002266
Yash Palanpure 2002276
Sudeep Das 2002237
 Company Profile & Product Components
Hero Motocorp Limited, formerly Hero Honda, is an Indian multinational
motorcycle and scooter manufacturer based in New Delhi, India. The
Transmission
company is the largest two-wheeler manufacturer in the world, and also
in India, where it has a market share of about 46% in the two-wheeler
Brakes
category. As of 31 December 2020, the market capitalisation of the
Seat
company was ₹68,474 crore (US$9.6 billion).
With over 100 million satisfied customers across the globe, it continues Instrument Cluster
to champion socio-economic progress and empowerment through its Bike
range of products and services. Engine

Portfolio Silencer
Damper
Bikes Scooters Head Lights
 Component Categorisation & ranking
Supply risk Profit impact
Criticality
Components Product Country of Shipment Social/ Impact on of Cost/value
availability origin accuracy Environmental Weighted profitability purchase of purchase Weighted
average average
0.2 0.2 0.3 0.3 0.25 0.4 0.35
Engine 3 4 3 1 2.0 2 5 2 3.2
Brakes 6 3 4 3 3.9 4 8 4 5.6
Seats 7 3 7 5 5.6 3 3 3 3.0
Instrument Cluster 5 3 4 7 4.9 5 8 6 6.5
Transmissions 5 5 6 8 6.2 7 8 8 7.7
Dampers 8 6 7 6 6.7 7 7 8 7.3
Silencer 6 6 6 5 5.7 3 7 2 4.3
Head light 5 3 3 4 3.7 8 7 8 7.6
Kraljic Matrix ( Based on Average Ranking)
 Non-critical items Leverage items
These purchases have a significant impact on the
These purchases have little impact on business
company's business, but they are also in abundant supply.
activity. They are in abundant supply, such as
With leverage items, there is plenty of room for
office supplies, for example.
manoeuvre and significant savings opportunities.

Appropriate strategies: fully exploiting your purchasing

Appropriate strategies: streamlining products, power by putting suppliers in competition with each other,
automating processes and monitoring volumes. negotiating or substituting products, for example.

Bottleneck items Strategic items

These purchases have a low business risk but are Business activity depends on these items. These are often
in limited supply (only a handful of suppliers). rare or unique resources, or in other words, high-stake
purchases for the company.

Appropriate strategies: guaranteeing volumes, Appropriate strategies: developing supplier partnerships

managing supplier relationships, securing stocks (particularly through the use of SRM software ), market
and supplies, putting backups in place etc. analysis and consideration of vertical integration etc.
 References
https://www.industryweek.com/the-economy/environment/article/21941213/top-
five-supply-chain-risk-factors
https://www.heromotocorp.com/en-in/
Thank You