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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.

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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.

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