Matching Strategy to Category Risk and Impact
Based on your category profile and market analysis, the Kraljic Matrix helps you decide the right sourcing approach for each category.
Kraljic Matrix - Sourcing Strategies
| Quadrant | Strategy | Sourcing Approach |
|---|---|---|
| Non-critical (low risk, low impact) | Simplify, automate | Catalog, blanket order, purchasing card, e-procurement |
| Leverage (low risk, high impact) | Maximize competition | Competitive RFQ/RFP, reverse auction, multi-supplier bidding |
| Bottleneck (high risk, low impact) | Secure supply | Long-term contract, safety stock, supplier development |
| Strategic (high risk, high impact) | Partnership, joint value | RFP with innovation component, strategic alliance |
⚠️ Critical: Applying the wrong strategy to a category is a common mistake. Running a reverse auction on a Strategic category destroys the supplier relationship. Using a complex RFP for a Non-critical category wastes everyone's time. Always match the approach to the quadrant.
👉 Full instructions for the matrix (building, scoring, annual refresh): see the Essential Tools for the Category Manager course (Module 4).