Map Spend Before You Source
Classify a procurement category by supply risk and profit impact before selecting a sourcing tactic.
Do not source the category until you know what kind of category it is. Impact and risk create four different jobs The Kraljic matrix asks whether the category materially affects margin, revenue, continuity, or customer promise, then asks whether the supply market is easy or hard. Those two axes create four jobs for procurement: simplify, compete, secure, or partner. The trap is using price pressure where assurance is needed A bottleneck item may not be expensive, but a missing unit can stop work. Pushing price too hard can make the only viable supplier less responsive. For bottleneck items, continuity, specifications,…
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