The Kraljic model is a procurement framework that helps organizations to segment their procurement activities and prioritize them based on the strategic importance of the goods or services being procured. The model was developed by Peter Kraljic in 1983 and is widely used by procurement professionals around the world.
The Kraljic model categorizes goods and services into four categories based on two key factors: the importance of the item to the organization’s operations and the complexity of the supply market. The four categories are:
The Kraljic model provides a framework for procurement professionals to prioritize their activities based on the strategic importance of the goods or services being procured. By leveraging this model, organizations can optimize their procurement strategy, effectively manage supplier relationships, and mitigate risks.
The Kraljic model category within the CIO Reference Library provides CIOs and other IT executives with a comprehensive set of resources that illustrate how to implement the Kraljic model. This category includes a range of resources, such as articles, whitepapers, and case studies, that offer insights into different aspects of the Kraljic model, such as framework overview, implementation guidance, best practices, and case studies. By leveraging these resources, CIOs and IT executives can gain a deeper understanding of how to effectively manage procurement activities and achieve desired business outcomes.
This paper compares the Peter Kraljic model of purchasing with the Michigan State University or Monczka Model of purchasing and reaches the conclusion that they are complementary and should be used together.
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