TheKraljic matrixfacilitates the management ofstrategic procurementby giving everyone, even without expertise, what to prioritize their decisions to secure their business and increase efficiency. With appropriate benchmarks and real examples, this article allows to understand the tool without jargon and to identify savings levers while piloting supplier relationships on a daily basis.
Kraljic Matrix: the essential to understand and act today
Do you want to classify your purchases according to their importance, reduce the risks associated with suppliers, or simply better negotiate? Kraljic's matrix provides concrete options for these issues, and it remains within reach of all enterprise sizes: even an SME with little time will find it useful support.
In a minute – this tool, conceptualized by Peter Kraljic in 1983, is based on two fundamental axes (impact on profits and risk of supply) to divide your purchases into four groups: simple purchases, leveraged purchases, bottlenecks and strategic ones. There are consistently significant gains:30 %savings are reported when piloting resources with this model, after various field returns (HubSpot, Manutan...). Here's what we can remember to move from theory to implementation!
Another point: here you will find concrete illustrations, a comparative table, an Excel model to download and testimonials of terrainl-ideal to reassure and guide those who still hesitate.
Summary of key points
- ✅ Kraljic's matrix prioritizes purchases based on impact and risk
- ✅ More than 30% savings are observed due to its use
- ✅ The tool adapts to all enterprise sizes, including SMEs
Set Kraljic Matrix
Kraljic's matrix goes beyond the academic framework: it is a real "GPS" for your purchases, designed to help companies resist unforeseen events. At its birth in 1983, the context was that of oil crises and highly unstable supply chains. Peter Kraljic, the original author, had published his research in the Harvard Business Review, a reference still cited today.
If you have ever wondered about how to "map" your suppliers, volumes and risks, this is the beginning of the right solution. Over the past four decades, the use of the matrix has been widespread in all sectors, and there are variations for both the public and private sectors. Some procurement professionals report a reduction of10-15 %costs from the first year of structured use: a field expert recently mentioned the agility of the tool for SMEs undergoing transformation.
A double goal: minimize risk, maximize opportunity
The idea is not to suffer market instability or dependence on a supplier, but rather to strategically manage its purchases. We segment the buying families, anticipate the problems, and adjust with precision. Some purchasing managers remember to avoid serious stock failures through rigorous anticipation.
Last point to note – everything is about prioritization, anticipation and piloting. Simple on paper, but powerful in practice!
Mechanisms and strategic axes of the matrix
To choose the right strategy, it is better to understand the two main questions that structure the Kraljic matrix. We note that logic is not as complex as it seems: it is enough to cross two concrete lines, illustrated by examples of everyday life.
Axis 1: Impact on profits
Let's take a closer look at a simple problem: "If this purchasing position stops, your activity continues... or collapse?" If financial survival is at stake, it is a high-impact purchase. The strategic importance axis takes into account the volume involved, the operating cost (TCO), and the weight of this purchase in the differentiation of your offer. A specialist trainer recently told how a bad arbitration on a technical tool had changed a whole contract.
In other words, there is a major difference between the desktop coffee and the critical components for your flagship product.
Axis 2: Complexity or risk of supply
The second focuses on security of supply. Here we measure the difficulty of supplying: monopolies, regulatory barriers, rarity... For example, when the Covid pandemic arrived, many SMEs found themselves without masks or raw materials, forcing urgent reorganizations. An industrial consultant observed that this vulnerability may arise where it is least expected.
It is regularly observed that a low-value but essential purchasing family in the event of a break can quickly become a critical point imagine a missing microcomponent that blocks an entire production chain.
The four buying families: decode each quadrant
Some compare the Kraljic matrix to a "dashboard" where each quadrant offers a distinct dynamic and strategy. Let's take a closer look at how they differentiate, and what levers can be activated.
1. Simple purchases (non-critical)
These low-value and low-risk purchases concern stationery, small maintenance, or standard supplies. The idea remains the simplicity: automate, standardize, limit processing time. Some users argue that digitisation of these processes has allowed them to free up to15 % timeper month–a significant gain for teams.
2. Leverage purchases
Here we talk about families that weigh heavily in the budget, but where the market is large and competitive. The slogan: negotiate! Some purchasing managers enjoy comparing offers, competing, and betting on volume to get advantageous prices.
Several SMEs save between 5% and 15% on these positions during annual renegotiations.
3. Purchases of bottlenecks
The risk of supply is high, but the direct financial impact remains moderate. There are rare consumables, or specific technical services. Many recommend proactive security: buffer stock, exclusive contract, plan B... An anecdote regularly cited: an industrial SME, at the time of the escalation, had underestimated the dependence on a single supplier for specific joints. Result: three days off production, estimated costover 20,000 €.
4. Strategic procurement
Most sensitive quadrant: high value, high risk. These are key raw materials, exclusive technologies, critical outsourcing... Partnerships, co-developing solutions, or investing in the long term are often recommended. Several experts point to the importance of integrating CSR and innovation into the decision.
In addition, "binome" driving with the general management becomes the norm, to keep control over these sources of value.
| Quadrant | Value added | Risk | Strategy |
|---|---|---|---|
| Simple | Low | Low | Standardize/Automate |
| Leverage effect | High | Low | Negotiate/Competition |
| Bottleneck | Low | High | Secure/Diversify |
| Strategic | High | High | Partnership/Co-building |
Application methodology: 4 steps to create your Kraljic matrix
Knowing is good. Action is essential. The approach is structured into a handful of steps, accessible and reproducible each year or during a review of the procurement strategy.
Step 1: Mapping the Purchase Portfolio
Gather all the organization's purchasing families (services, materials, recurring benefits). First, an Excel table is enough. The model proposed below is used byover 10,000 buyersand judged very effective by various field officials.
Step 2: Assess Impact and Risk
Select for each family a note according to:
- Impact on profitsvolume engaged, level of dependence, differential effect on margin
- Supply risksupplier diversity, stability, technological barrier
The rating can be qualitative ("low/medium/strong") or encrypted (1-5). Some purchasing directorates prefer the collaborative workshop to cross points of view, which regularly generates more reliable analyses. A team leader pointed out that an open debate helps to avoid blind spots in the positioning of families.
Step 3: Position in Quadrants
Then place each group on the axes, grouped by quadrant. Here, some start with a pencil-paper scheme, others use the downloadable model to structure from the first year.
Step 4: Determine the appropriate strategies
For each segment, set an action plan – standardisation, intensive negotiation, security, or partnership. Write down your purchasing priorities for the year: expected gains, monitored risks, and "quick wins".
It is often found that SMEs having set up this process observe concrete results less than12 months, with earnings of up to 10% on leveraged families (source Learn-les-Achats.fr).
Want to test these steps right now? The downloadable template below will help you.
Concrete cases and limitations of the matrix today
The main strength of the matrix is its versatility: manufacturing (steel, electronics), computing (cloud), restoration (disposable supplies), public sector (maintenance of buildings)... Everyone gains from it: security, savings, negotiation. Yet not everything is perfect: there are limits to know.
Case study: SMEs, public sector, CSR issues
Some experts are accompanying novice procurement managers in the public sector: prioritizing "goulots" and integrating CSR into strategic procurement are changing the situation (e.g. calls for tenders with environmental criteria, or matching responsible suppliers).
More50 %SMEs adapt their strategic purchases according to their CSR commitment in 2024. This phenomenon is closely monitored by professionals.
Limitations and modernization: digitalisation, post-crisis developments
Three points to be monitored:
- Regular update: what was not critical yesterday may be tomorrow (standards, logistic crisis, etc.)
- Resisted team: an open debate improves family positioning, according to several procurement consultants
- Digital toolsExcel remains sufficient to start, but digital platforms facilitate updating and generate automatic alerts (HubSpot, Manutan, PurchasingPublic.info...)
If you are gradually integrating CSR and compliance, especially in the public context, you usually anticipate the issues better and take a step ahead.
Good to know
I recommend that you conduct open discussions with the team during the risk assessment, as this helps avoid blind spots and improve the reliability of the positioning of purchases.
Practical resources and tools to download
Having information is necessary but really equipping is what makes the difference regularly. Here are some useful resources to help you deepen:
- Download Excel template(virgin or pre-filled, HubSpot)
- BBC/Manutan infographic and field application cases
- Check-list of auto-diagnosis(industry, public sector, services)
- Registration for an expert newsletter ("The Procurement Bases") more than100,000 buyersalready follow these advices each month
A tool soon accessible: an interactive quiz to quickly position your 5 main shopping families at the next webinar. For any question, the FAQ below is also at your disposal (do not hesitate to browse the experience feedback).
FAQ Everything you wanted to know about Kraljic's matrix
What are the 4 quadrants of the Kraljic matrix?
Simple, leveraged, bottlenecks, strategic: each segment corresponds to a recommended action (see table above for an overview).
How do I classify my purchases in the right segments?
Analyze your expenses, assess risks, assign a note, and position on the matrix with the downloadable template. A field trainer suggests testing exercise with the team for more reliability.
Is the Kraljic matrix suitable for SMEs?
Yes. It applies to all business sizes. It's best to just start, then adapt the tool every year. Some SMEs prioritise "goulot" and leveraged families, as they generate rapid gains.
Can we integrate it into CSR criteria?
Absolutely! Add social or environmental indicators when classifying, including strategic purchases. This is also why the tool adapts to the new challenges of the sector.
Is there a ready-to-use model?
Yes: You can download an Excel, PowerPoint or PDF template on HubSpot, Manutan or via the above resources.