This is a great purchase training read. Most often purchasing is not included in a strategy, it becomes ‘it just is’. Read the how-to strategize this function to your business advantage. The age of this model doesn’t affect its current wide use today.
Excerpt: The Kraljic Portfolio Purchasing Model was created by Peter Kraljic and it first appeared in the Harvard Business Review in 1983. Despite its age, it’s a popular and useful model used in companies worldwide.
Its purpose is to help purchasers maximize supply security and reduce costs, by making the most of their purchasing power. In doing so, procurement moves from being a transactional activity to a strategic activity – because, as Kraljic said, “purchasing must become supply management.”
Read full article via The Kraljic Portfolio Purchasing Model – Strategy Skills Training from MindTools.com.