Examples of the 4 Product Categories of Kraljic




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Retselisitsoe Tsolo
Manager, Lesotho

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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6
Walter Hugo Coronel
Business Consultant, Argentina
 

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.

 
3
Jose Blauw
Manager, Netherlands
 

Examples of Product Categories Kraljic

- If you can easily switch between several suppliers, bargain serious on price without large impacts... Sign up

 
4
Koen Vandermarliere
Business Consultant, Belgium
 

Examples of 4 Kraljic Product Categories

Hi, it is impossible for me to explain how your categories should fit in the product categories with... Sign up

 
1
Diego
Analyst, Argentina
 

Buying Non-Critical Kraljic Items

@Walter Hugo Coronel: How do we purchase non critical items? Further a catalogue or open contract, i... Sign up

 
2
Koen Vandermarliere
Business Consultant, Belgium
 

How to Buy Non-Critical Kraljic Items

Hi Diego, Usually the strategy used for non critical items is to set up a frame agreement with very... Sign up

 
2
Walter Hugo Coronel
Business Consultant, Argentina
 

Examples for Non-critical Categories

@Diego: Hi Diego! I strongly agree with Koen's ideas. Furthermore, keep in mind that your main goal ... Sign up

   

More on Kraljic Model:
Summary
Discussion Topics
👀Examples of the 4 Product Categories of Kraljic
Public Procurement Process
What is Purchase Marketing?
Beyond the Steady State
Sustainability Criteria in Purchasing Strategy
Types of E-Procurement Tools
E-Procurement Strategy per Category
Buygrid Framework (Robinson)
Controlling the Supply Chain in an Unstable Environment
Factors to Analyse a Purchasing Portfolio Beyond those in the Kraljic Model
Rate Contract versus System Contract
Software Procurement & Automotive SPICE
Tips on Managing a Procurement Department
Generic Purchasing-Decision Model
🔥Kraljic Model for Similar Product Comparison
Strategic Process for Global Sourcing
Backward Integration in Procurement Positioning Matrix
Collaboration Styles of Purchasing Managers
Extensive Bargaining in Procurement Positioning Matrix
From Company Strategy to Purchasing Strategy to Commodity Strategy
Procurement Outsourcing in Procurement Positioning Matrix
Product Re-engineering in Procurement Positioning Matrix
Criteria for Supplier Categorization
Dominant Purchasing Factor: Quality or Price?
Best Value Performance Information Procurement System (Best Value PIPS)
Kraljic Template & Manual
The TIME Factor in Procurement and Logistics Negotiations
Dealing with a Unique Supplier While You Don't Have Negotiation Power
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