Kraljic matrix

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In supply chain management, the Kraljic matrix (or Kraljic model) is a method used to segment the purchases or suppliers of a company by dividing them into four classes, based on the complexity (or risk) of the supply market (such as monopoly situations, barriers to entry, technological innovation) and the importance of the purchases or suppliers (determined by the impact that they have on the profitability of the company). This subdivision allows the company to define the optimal purchasing strategies for each of the four types of purchases or suppliers.

It is named after Peter Kraljic, who first formulated the model in an article called Purchasing Must Become Supply Management, published in the Harvard Business Review in 1983.^[1]