Dear All,
For my PhD project, I am trying to determine which criteria and factors should be included for two dimensions of Kraljic's Purchasing Portfolio Matrix well-known in the procurement world. The ones I have collected so far from the original Kraljic’s article (marked with *) and also from other sources are listed below with no order of importance. I appreciate your comments on proposed criteria and also any other extra criteria you may suggest with a short explanation. Thank you in advance.
STRATEGIC IMPORTANCE OF PURCHASING (or IMPACT ON PROFIT)
· Volume/monetary value of purchases (*)
· Percentage to total purchase cost (*)
· Switching costs (*)
· Impact on end product quality/reliability (*)
· Impact on business growth (*)
· Impact on competitiveness
· Additional value on product differentiation
· Impact on production or supply network continuity
COMPLEXITY OF SUPPLY MARKET (or SUPPLY RISK)
· Product availability/scarcity (*)
· Number of suppliers (*)
· Entry barriers for new suppliers (*)
· Storage risks (*)
· Competitive demand (*)
· Rate of technological advances (*)
· Product substitution possibilities (*)
· Make-or-buy opportunities (*)
· Supplier substitution possibilities
· Price volatility
· Cost structure complexity
· Environmental risks
· Legal requirements
· International trade risks
· The complexity of supply network at Tier 2 and Tier 3 level