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Backward Integration in Procurement Positioning Matrix

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Kraljic Model
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3
Inoka Liyanage
Sri Lanka

Backward Integration in Procurement Positioning Matrix

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

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3
Anonymous
 

Backward Integration in Kraljic Matrix

Backward integration is happening when a firm aims to increase its control of its inputs or supplies. It is therefore typically a risk-reduction strategy. So in my opinion it typically involves Bottleneck or Strategic Items in the procurement positioning matrix of Kraljic.

 
0
Anonymous
 

Backward Integration in Kraljic

@Anonymous: I agree, it woudn't make sense in the other quadrants as the supply risk is relatively small.
So bottleneck or strategic.

 
1
Bakkabulindi Andrew
Consultant, Uganda
 

Backward Integration and Purchasing

Actually to add on to that, Backward integration happens when a firm takes possession of what may be required for an operation to take its course, preventing having to hunt for such required materials at suppliers which is more risky.
Therefore, taking control over such materials minimizes the would-be risks.

 

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
👀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
topic 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
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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
👀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
topic 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
Knowledge Center



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