Lapasar
Sourcing & Suppliers

Kraljic Matrix

Also known as: Kraljic portfolio matrix

The Kraljic matrix is a tool that classifies purchases by profit impact and supply risk to help procurement choose the right strategy for each category.

WhatsApp us rfqme@lapasar.com

The matrix plots items on two axes — profit impact and supply risk — creating four quadrants: strategic (high impact, high risk), leverage (high impact, low risk), bottleneck (low impact, high risk) and routine or non-critical (low impact, low risk). Each quadrant implies a different approach, from close partnership for strategic items to automation for routine ones.

First published in 1983, the Kraljic matrix remains a widely used framework for category management and supplier segmentation. It helps buyers decide where to negotiate hard, where to secure supply, where to partner and where to simply streamline low-value buying.

Example

Office pens fall in the routine quadrant, so a buyer automates them through a catalogue; a custom-engineered component with one capable maker sits in the bottleneck quadrant, so the buyer secures supply with a framework agreement and safety stock.

Frequently asked questions

What is the Kraljic matrix?
The Kraljic matrix classifies purchases by profit impact and supply risk into four quadrants — strategic, leverage, bottleneck and routine — each suggesting a different procurement strategy.
How do you use the Kraljic matrix?
Assess each category's profit impact and supply risk, place it in the matching quadrant, then apply the recommended approach — partnering for strategic items, leveraging competition for leverage items, securing supply for bottlenecks and automating routine buys.

Explore related across the knowledge graph

TemplateSupplier Ethics Declaration TemplateAn editable Word declaration setting out conduct, anti-bribery and integrity expectations for suppliers to sign.GlossaryDual SourcingDual sourcing is the practice of using two suppliers for the same item to balance competitive pricing against supply resilience.GlossaryMulti-sourcingMulti-sourcing is the practice of buying the same item or service from several suppliers rather than relying on a single source.GlossarySingle SourcingSingle sourcing is the deliberate choice to buy a particular item from just one supplier, even though alternatives exist.GuideSupplier evaluationHow to assess and shortlist suppliers against structured criteria — so selection is based on evidence and total value, not price or familiarity alone.GuideSupplier managementThe discipline of selecting, onboarding, measuring, developing and governing the suppliers an organisation depends on — across the whole relationship.GuideSupplier portalThe self-service interface where suppliers manage their own details, orders, invoices and documents — cutting admin for both sides and keeping data clean.SolutionBecome a Lapasar VendorSell to enterprise and GLC buyers through Lapasar's managed marketplace, with fulfilment and payment handled for you.SolutionHow to Become a Supplier to Large Corporates & GLCs in MalaysiaA step-by-step guide for Malaysian businesses that want to sell to large corporates and GLCs — register the company, get MOF-ready where relevant, list on a B2B marketplace, and get paid early.SolutionProcurement for SMEs in MalaysiaProcurement for Malaysian SMEs without a procurement department — one account for 2M+ SKUs, credit terms for approved businesses and one consolidated invoice.ToolEarly Payment Benefit CalculatorSee what getting paid in days instead of months is worth to a supplier.ToolFree Procurement Tools & TemplatesEvery Lapasar procurement calculator plus editable RFQ, purchase order, policy and evaluation templates.ToolSupplier Consolidation CalculatorModel the savings from rationalising a fragmented supplier base.TemplateSole Source Justification TemplateAn editable Word form that documents an audit-defensible case for a single-source or direct award.TemplateSupplier Evaluation TemplateA weighted, criteria-based Excel scorecard to compare and select suppliers objectively.
Back to the procurement glossary

Put procurement theory into practice

Talk to our team about wholesale pricing, credit terms, sourcing support and delivery across Peninsular Malaysia — or explore the marketplace built for Malaysian enterprises.

Request a demoExplore enterprise procurement

Prefer to talk to a real person?

Our team replies fast on WhatsApp and email — no forms, no waiting.

WhatsApp us rfqme@lapasar.com