Backward Integration in Procurement Positioning Matrix

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Inoka Liyanage, Sri Lanka
What is the most appropriate quadrant in the procurement positioning matrix to which a strategy is best suited? Please motivate your point of view. (...) Read more? Sign up for free

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  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.

  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.

  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.

 
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