Extensive Bargaining in Procurement Positioning Matrix

Kraljic Model
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Inoka Liyanage
Sri Lanka

Extensive Bargaining in Procurement Positioning Matrix

What is the most appropriate quadrant in the procurement positioning matrix to which an extensive (hard) bargaining strategy is best suited? Please motivate your point of view.



Extensive Bargaining in Kraljic Matrix

Extensive bargaining obviously makes most sense for items with a large impact on profitability. And should be avoided for items with high supply risk in order not to risk too much to achieve some savings, but increasing the risk of non-availability even further.
So in my opinion we are most likely going to see extensive bargaining for Leverage Items, and it's the least likely for Bottleneck Items.


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