Course presentation

Course Level: 

Basic level course.  Approx: 20 minutes.


Course Description:

Welcome to our basic level online course on "Get to know Kraljic and his matrix"! This course is designed to teach you the basics you need to know about the Kraljic matrix, one of the most widely used tools in procurement management.

We will teach you how to use the Kraljic matrix to optimize your category strategy and sourcing tactics. 

By taking our course, you will gain a deeper understanding of the Kraljic matrix and how it can be used as part of the most important procurement processes.


Learning Objectives:

  • Understand the Origins of Kraljic’s Matrix: Explore who Peter Kraljic is and the historical context in which he developed his Matrix.

  • Comprehend the Functionality of the Matrix: Gain a deep understanding of how Kraljic’s Matrix is structured and its key components.

  • Application in Procurement Processes: Learn how to apply Kraljic’s Matrix in different procurement processes to enhance decision-making.


Who Should Enroll:

  • Procurement professionals seeking to enhance their procurement skills and get a first introduction to Kraljic's Matrix.
  • Supply chain managers and business strategists interested in procurement optimization.
  • Anyone interested in the history and application of Kraljic’s Matrix in procurement.


Why This Course:

Participants will gain a comprehensive understanding of Kraljic’s Matrix, equipping them with the skills to make more informed and strategic decisions in procurement. This course will enable you to optimize your procurement strategies, improve supplier relationships, and contribute significantly to your organization's success.

Curriculum

    1. Introducing Learning Objectives.

      FREE PREVIEW

    1. Download the slides shown in the course.

    2. Peter Kraljic's Matrix was published first time in 1983 (Harvard Business Review).

    1. Profit Impact and Supply complexity - the two dimensions in Kralijc's matrix.

    1. Procurement processes which apply Kraljic’s matrix

    1. Questions to help you verify the Learning Objectives.

    1. Summery of the course

    2. Reflection after the course

About this course

  • €20,00
  • 8 lessons
  • Basic course - Tactical buyer role
  • 20 min
  • Quiz and Certificate

In this course you will meet Fredrik Axelsson

Senior instructor. Fredrik Axelsson

Meet Fredrik, a seasoned procurement professional from Gothenburg, Sweden, with a Master's in Economics from Gothenburg University and an Executive MBA from Stockholm Business School. With roles at LM Ericsson, Solectron Sweden AB, Axelson Purchasing Resources AB, Saab AB, and Alstom/GE, Fredrik has amassed expertise in sourcing and procurement. In 2017, he launched Sourcing Partner, a procurement consultancy firm how also own and manage Learn How to Source. Fredrik's diverse experience spans from Operative Buyer to Sourcing Director and roles like Commodity Manager and Business Development, in line organizations and projects, including industries like banking and manufacturing. Fredrik's story is one of continuous growth, learning, and adaptation, making him a well-rounded professional with a wealth of knowledge to offer.

The evolving role of Kraljic's Matrix

Kraljic's Matrix, developed by Peter Kraljic in 1983, is a strategic tool used in procurement to classify goods and services based on their profit impact and supply risk. This classification helps procurement departments determine the most appropriate sourcing tactics for different categories of purchases, ranging from routine transactions to strategic partnerships.


Guiding Procurement Strategy

The matrix categorizes items into four quadrants: non-critical items, leverage items, bottleneck items, and strategic items. This categorization aids procurement teams in aligning their purchasing strategies with the broader goals of the company. By understanding where each item falls within the matrix, procurement can prioritize efforts, allocate resources effectively, and mitigate risks.


Differentiating Market Approach

In determining how to approach the market, whether through finding a partner or using competitive bidding, Kraljic's Matrix is invaluable as support to the in-house, pre-RFQ discussions. For strategic items with high profit impact and high supply risk, forming long-term partnerships might be more beneficial than competitive bidding. On the other hand, for leverage items with high profit impact but low supply risk, competitive bidding can be advantageous.


Enhancing Supplier Relationship Management

Kraljic's Matrix also plays a pivotal role in supplier relationship management. By categorizing items, procurement professionals can decide the level of engagement needed with different suppliers. Strategic items might require close collaboration and partnership, while non-critical items might need only basic vendor management.


Adapting to Market Changes

In today's dynamic market, Kraljic's Matrix helps procurement departments remain agile. It allows for continuous reevaluation of purchasing categories in response to market changes, such as shifts in supply chain risks or changes in business strategy.


Reflecting on Procurement Evolution

Kraljic’s Matrix has evolved from a simple procurement tool to a strategic framework that supports decision-making at a higher level. It reflects the evolution of procurement from a transactional function to a strategic unit within organizations.


In conclusion, Kraljic's Matrix is more than just a procurement tool; it's a strategic framework that guides modern procurement departments in making informed, strategic decisions. Its application in the sourcing process is particularly crucial, providing a structured approach to managing supply risks, enhancing supplier relationships, and aligning procurement strategies with business objectives. As procurement continues to evolve, tools like Kraljic's Matrix will remain essential in navigating the complexities of modern supply chains.

Enjoy the course /// Fredrik

Kraljic and Portfolio analyses by Paul Rogers

Next recommended step is to visit Paul Rogers

Kraljic Portfolio management connect the four quadrants (Leverage, Non critical, Strategic and Bottleneck) in Kraljic´s matrix to 8 relevant sourcing strategies.
To the course

About Learn How to Source

Learn How to Source is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and include quizzes and certificates. They can be accessed from any device, emphasizing microlearning for flexibility and efficiency.