Procurement Outsourcing in Procurement Positioning Matrix

Kraljic Model
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Inoka Liyanage
Sri Lanka

Procurement Outsourcing in Procurement Positioning Matrix

What is the most appropriate quadrant in the procurement positioning matrix to which a procurement outsourcing strategy is best suited? Please motivate your point of view.

  Anonymous
 

Procurement Outsourcing in Kraljic Matrix

If a firm outsources procurement processes, that will normally be an efficiency / cost-reduction strategy and it will focus on non-critical items. Normally one would not outsource items that are critical for the production process or that have a high impact on the profit (or both).
So procurement outsourcing in the Kraljic Matrix will normally focus on Non-critical items.

 

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