Re-evaluating supplier relationships using the Kraljic Matrix
A conversation with Brian Seipel, Senior Consultant at Corcentric, about the value we can still derive from the Kraljic Matrix based on spend/supplier importance v. market complexity.
In the early 1980’s Peter Kraljic proposed his two-by-two matrix as a way of informing the B2B negotiating process. Back then, procurement nearly always approached supplier decisions with a three-bids-and-a-buy process and formulaic negotiating tactics. At the time, it worked because most companies were operating in relatively stable conditions.
But what about now? Does the Kraljic matrix still work today?
In this Corcentric Conversation, Brian provides an overview of the Kraljic matrix and points out how procurement can leverage it to strategically revisit (and recategorize) our supplier relationships:
- How procurement can play an important role in companies that are forced to choose between cutting costs and cutting headcount.
- The options available when trying to manage ‘bottleneck’ suppliers in hard times.
- Ways procurement can deliver short term savings without undoing all of the effort we have invested in building a value-beyond-savings brand.
- How to partner internally and externally to realize mutual gain in the short, medium, and longer term.
About our Guest: Brian helps organizations perfect their strategic sourcing abilities, better manage supplier relationships, and refine their processes to clear away roadblocks.