Activity 19Kraljic portfolio analysis
Overview
Dr Peter Kraljic was the first academic to bring portfolio models into the procurement arena. He developed his matrix in the early 1980s, with the aim of demonstrating how much time buyers should focus on managing different categories of expenditure within an organisation.
The matrix is based on two dimensions: a simplified classification of an organisation’s expenditure on goods and services in terms of the profit potential, and supply risk.
Elements
The two key dimensions can be defined as follows:
- Profit impact – This ...
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