Kraljic Portfolio Matrix
Drag categories between quadrants to reposition them
← Low Supply Risk High →
⭐ Strategic
High value · High supply risk
Partner — develop long-term relationships, joint planning, SRM
💪 Leverage
High value · Low supply risk
Exploit — competitive tendering, drive price, use buying power
⚠ Bottleneck
Low value · High supply risk
Secure — safety stock, dual source, develop alternatives
📦 Non-critical
Low value · Low supply risk
Streamline — automate, consolidate, P-cards, vendor managed
↑ High profit impact / spend value
↑ High profit impact / spend value
← Low Profit Impact / Spend Value High →
Add a spend category
◆ CIPS exam tip
Kraljic is tested at L4, L5 and L6. Know the four quadrants cold. The key insight: you don't apply the same strategy to all spend — you differentiate. Strategic = partner. Leverage = compete. Bottleneck = secure supply. Non-critical = automate and simplify. The exam loves scenarios where you must move a category between quadrants — e.g. a sole-source supplier goes into administration, moving a leverage item to bottleneck.
Quadrant strategies
⭐ Strategic — Partner
Long-term relationships, SRM, joint innovation, risk sharing, total cost focus. These are your critical suppliers.
💪 Leverage — Exploit
Competitive tendering, price negotiation, multiple suppliers, volume aggregation. Use your buying power.
⚠ Bottleneck — Secure
Safety stock, dual/multi sourcing, long-term contracts, develop alternatives. Don't let supply fail.
📦 Non-critical — Streamline
P-cards, e-catalogues, vendor managed inventory, consolidate suppliers. Reduce transaction costs.