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Criteria for Supplier Categorization
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Kraljic Model
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Makena Maureen
Kenya

Criteria for Supplier Categorization

I need criteria to categorize my suppliers so as to give the most priority to the most strategic suppliers. In what way can I categorize these vendors?
 
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Koen Vandermarliere
Business Consultant, Belgium
 

Criteria to Categorize your Strategic Vendors

Hi Maureen, thanks for your question,
I'm sure that you can do that by using Kraljic. You need to assess 2 things with regards to the vendors or the products (depending if you are doing this exercise on supplier level or on commodity level):
- 1 is the importance of the business you do with each vendor, and
- the importance of supply risk involved working with each supplier.
The suppliers with the highest risk and highest profit impact are strategic suppliers, high risk and low value are leverage suppliers that you should try to evolve to strategic.
Does this help? To get more in depth please provide more info on your business, etc.

 

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

SIG Leader

Do you know a lot about Kraljic Model? Become our SIG Leader
Knowledge Center

Kraljic Model
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