The Kraljic matrix is a portfolio framework that segments purchased items or categories using two dimensions commonly expressed as profit impact and supply risk. The resulting quadrants support different strategic conversations, but the matrix is not a complete category strategy. Teams should define their scoring evidence, challenge subjective placement, and supplement it with operational and market context.
In plain English
It helps procurement choose different strategies for categories with different value and supply-risk profiles.
Illustrative example
At Northstar Industrial Systems, the team places a high-impact, single-source control component in the strategic quadrant and documents the evidence behind that choice.
- Related terms
- Category strategy; Supplier risk assessment; Spend analysis; Portfolio analysis
- Lifecycle stages
- Strategy; Source
- Stakeholders
- Procurement; Operations; Finance; Executive leadership