Purchasing portfolio

Purchasing Portfolio Matrix 40 8.77 Quality Mgmt Techniques 5 1.10... 

Segmentation of Spend Purchasing Portfolio Matrix Pareto Analysis QV Methodology 8.77 2.41 0.44 11.62%... 

Project Management Techniques 7.20 27 73 2 Purchasing Portfolio Matrix 8.77 33 67... 

Input from other CMs Purchasing portfolio matrix (1A)... 

Gelderman, C. J., van Weele, A. J. (2003). Handling measurement issues and strategic directions in Kraljic s purchasing portfolio model. Journal of Purchasing and Supply Management, 9(5/6), 207. 

This section deals with the role different suppliers play within a firm. In a first step, the presents of different supplier bases is evaluated. Moreover, some general questions are presented about supplier segmentation. Second, a questionnaire is presented to classify a company s AS-IS suppliers based on a purchasing portfolio matrix developed by (Kraljic 1983). 

In this context, Kraljic introduced in 1983 the purchasing portfolio matrix which groups the procured items into four categories positioned alongside the two dimensions ... 

Gelderman, C.J., Rethinking Kraljic Towards a Purchasing Portfolio Model, Based on Mutual Buyer-Supplier Dependence, Open Universiteit Nederland, ] me 2000. GUliland, M., Is Forecasting a Waste of Time Supply Chain Management Review, July/August 2002, pp. 16-23. 

Gelderman, C., VanWeele A. (2005). Purchasing portfolio models A critique and update. Journal of Supply Chain Management, 41, 19-28... 

A number of approaches seek to segment suppliers into categories. The purchase portfolio matrix presented in Figure 9.2 is based on the notion that a customer will seek to maximise purchasing power when it can. This approach assumes that the key factors that affect the relationship are the strength of the buying company in the buyer-supplier relationship, and the number of suppliers able and willing to supply a product in the short term. 

Selecting an organisation of your choice, use a copy of the purchase portfolio matrix (Figure 9.2) and plot on it the names of its top 10 customers and top 10 suppliers. Which position would your chosen company prefer to be in Suggest actions that would make the situation better. 

The choice of the appropriate relationship is helped by recognising that some suppliers are more strategic than others. One way to segment the supplier base is to use the purchase portfolio index, and to divide suppliers according to strategic, bottleneck, non-critical and leverage characteristics. 

Figure 10.5 Purchase portfolio matrix.(Adapted from Kraijic P. Purchasing Must Become Supply Management Harvard Business Review, 1983.)...

How can the purchase portfolio matrix be used First, segment purchased goods and services into one of the four quadrants. Once the purchases are segmented, develop the appropriate purchasing strategies, policies, processes, and relationships. 

---