The Kraljic portfolio matrix is a strategic tool used to segment an organization's purchases or suppliers into four categories based on two key dimensions: profit impact and supply risk.

1. Strategic Items (High Profit Impact, High Supply Risk): These are critical to the business and have a high supply risk. The focus is on forming long-term, collaborative partnerships.

2. Leverage Items (High Profit Impact, Low Supply Risk): These items represent a large portion of expenditure but are sourced from a competitive market. The strategy is to leverage purchasing power through negotiation.

3. Bottleneck Items (Low Profit Impact, High Supply Risk): These have a low financial impact but a high supply risk. The primary goal is to ensure supply continuity.

4. Non-critical Items (Low Profit Impact, Low Supply Risk): These are easy to purchase and have a low business impact. The focus is on process efficiency and automation.

1. Kraljic

P. (1983). Purchasing Must Become Supply Management. Harvard Business Review

61(5)

109–117. The matrix and its four quadrants are introduced and detailed on pages 111-112.

2. Van Weele

A. J. (2018). Purchasing and Supply Chain Management (7th ed.). Cengage Learning. The Kraljic matrix is explained in Chapter 5

Section 5.4.2

"The purchasing portfolio matrix of Kraljic."

3. Gelderman

C. J.

& Van Weele

A. J. (2003). Handling measurement issues and strategic directions in Kraljic's purchasing portfolio model. Journal of Purchasing & Supply Management

9(5-6)

207-216. The four quadrants are described as the core of the model on page 208. https://doi.org/10.1016/j.pursup.2003.07.001

4. Kamann

D. J. F.

& van der Vaart

T. (2004). The Strategic Role of External Resources. In: The Blackwell Encyclopedia of Management. Wiley. The entry on the Kraljic Matrix explicitly defines the four quadrants: routine (non-critical)

leverage

bottleneck

and strategic.