Examples of the 4 Product Categories of Kraljic
I don't manage to draw up a clear difference between the 4 categories of product. I am operating in the milling industry. We buy raw materials, packing materials, spares and stationery. Which is which? Thanks for your input...
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Walter Hugo Coronel
Business Consultant, Argentina
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Examples of 4 Product Quadrants Kraljic
As examples vary from one industry to another and from one market to another, this is something that has to be done inside the company taking into account your strategic drivers.
Take for example one typical purchasing category: uniforms.
- For a company with 20 back office employees in a city with hundreds of options to buy a simple uniform this is a non critical category.
- In the same market for a company with 3000 employees, it's a leverage category.
- For a retail company, which sells “special branded uniforms” made by a supplier with a patented technology for this uniform fabrics, with a contract to sell only through this reseller (this means that if the reseller is successful they are both successful and vice versa), this is a strategic category.
- For a nuclear plant, uniform providers are scarce, maybe only one, which has no special interest in providing more or better, here you have a typical bottleneck category, where the supplier will provide you with what they sell, not with what you need or desire.
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