ABSTRACT

Purchasing is a process to which beginning enterprises pay little attention. As the enterprise grows, the numbers of suppliers and products and services that must be bought in increase. With a less flourishing economy or with Supply Chain Integration, the necessity to save costs and review the purchasing portfolio arises. P. Kraljic's model puts the portfolio in a matrix according to two different viewpoints, financial and risk. He defines four different product groups: leverage products, strategic products, routine products and bottleneck products. When analysing and interpreting the matrix, it is wise to allow latitude and time for thorough discussions and a critical review of the placing of products in a quadrant. Filling in the model for the first time requires a prodigious effort from the enterprise. The model offers the possibility for the personnel of the enterprise to opt for a certain supplier, based on subjective observation.