Blog | May 20, 2020 | by Kelly Barner

Re-evaluating Supplier Relationships Using the Kraljic Matrix

Conversation with Brian Seipel, a Procurement Advisory Consultant for Source One, a Corcentric company

In the early 1980’s Peter Kraljic proposed his two-by-two matrix as a way of informing the B2B negotiating process. Back then, procurement nearly always approached supplier decisions with a three-bids-and-a-buy process and formulaic negotiating tactics. At the time, it worked because most companies were operating in relatively stable conditions.

But what about now? Does the Kraljic matrix still work today?

Brian Seipel, a Procurement Advisory Consultant for Source One, a Corcentric company, joined us to talk about the value we can still derive from the matrix based on spend/supplier importance v. market complexity.

In this Corcentric Conversation, Brian provides an overview of the Kraljic matrix and points out how procurement can leverage it to strategically revisit (and recategorize) our supplier relationships:

  • How procurement can play an important role in companies that are forced to choose between cutting costs and cutting headcount.
  • The options available when trying to manage ‘bottleneck’ suppliers in hard times.
  • Ways procurement can deliver short term savings without undoing all of the effort we have invested in building a value-beyond-savings brand.
  • How to partner internally and externally to realize mutual gain in the short, medium, and longer term.

Thank you for listening. Be sure to tune in to our next Corcentric Conversation. Until next time!

About our Guest: Brian Seipel, a Procurement Advisory Consultant for Source One, a Corcentric company. Brian helps organizations perfect their strategic sourcing abilities, better manage supplier relationships, and refine their processes to clear away roadblocks.