Kraljic Matrix
Aggregate purchasing categories, score supply risk, and map each category into a procurement strategy quadrant.
Why use this tool?
Use this tool when you need to prioritise purchasing categories by business impact and supply risk before choosing sourcing actions.
It places categories into strategic, leverage, bottleneck, or non-critical quadrants using spend-based impact and user-scored supply risk.
Load the sample to see separate item-supplier assessment rows with annual spend, structured supply-risk scoring, and sourcing recommendations.
Categories in the strategic quadrant usually need closer supplier management, while non-critical categories are better suited to simpler purchasing routines.
- 1 Import Data Load category, supplier, and spend data
- 2 Assess Risk Apply procurement judgement to each supplier relationship
- 3 Build Matrix Combine supply risk and profit impact
- 4 Interpret & Export Review quadrants and choose sourcing actions
1. Data Import
Prepare your procurement spend file
Upload an Excel or CSV file with one row for each item or category and supplier record.
- Item / Category Name
- The product, material, service, or spend category you want to assess.
- Supplier Name
- The supplier associated with that row. Repeat the item on another row when it has multiple suppliers.
- Annual Spend
- The total amount spent or committed for that row over a consistent 12-month period. Use one currency throughout.
Example row: Electronic EComponents | Supplier-ABC | 450000
Drag & drop your procurement-spend Excel (.xlsx, .xls) or CSV file here
Or click to browse files from your computer
Category Assessment List
| Item / Category | Supplier | Annual Spend | Supply Risk | Profit Impact | Kraljic Quadrant | Top Risk Driver | Delete |
|---|
After all categories have a calculated Supply Risk, update the matrix to plot the current assessment.
About Kraljic Matrix Analysis
The Kraljic Matrix is a procurement planning method that helps teams decide how much attention, control, and supplier management effort different purchases need. It compares each item against two practical questions: how much the item affects business performance, and how difficult or risky it is to secure supply.
In this tool, profit impact is plotted from left to right and supply risk is plotted from bottom to top. The resulting position places each item into one of four categories, giving procurement teams a clear way to prioritise sourcing strategy, supplier conversations, and risk mitigation.
Guidance
- Upload a CSV or Excel file that includes category, supplier, and annual spend fields.
- Map the imported columns so the tool can aggregate annual spend by item-supplier combination.
- Review the calculated profit impact score, which is based on each item-supplier relationship's annual spend.
- Select and confirm the risk factors that apply consistently across the categories being compared.
- Assess each item-supplier relationship from very low to very high for every selected factor.
- Choose equal weights or enter custom weights that total 100%, then review the calculated contribution breakdown.
- Use Update Matrix below the Category Assessment List to display the current matrix, then export the table or image when needed.
Category Strategy Notes
High impact and high risk. Build close supplier relationships, plan early, monitor risk, and consider long-term agreements.
High impact and lower risk. Use competition, volume consolidation, and negotiation to improve value without overcomplicating supply.
Lower impact but high risk. Focus on availability, backup options, specifications, and practical ways to reduce supply exposure.
Lower impact and lower risk. Keep the buying process simple with standard terms, catalogues, automation, or reduced administration.
Methodology, Assumptions, and Limitations
Notation
Ai = annual spend for item-supplier relationship i, sij = risk score for factor j, wj = factor weight
Spend aggregation
Ai = sum of imported annual-spend rows with the same item/category and supplier
Normalised spend
Ni = (Ai - Amin) / (Amax - Amin)
Profit-impact score
Ii = round(4Ni) + 1, constrained to 1-5. If all spends are equal, every relationship receives 3.
Weight requirement
∑j=1k wj = 1, equivalent to 100%
Supply-risk score
Ri = ∑j=1k wjsij, where each factor score is from 1 to 5
High/low split
Profit impact is high when Ii > 2. Supply risk is high when Ri > 2.
Quadrants
High impact/high risk = Strategic; high/low = Leverage; low/high = Bottleneck; low/low = Non-Critical
Profit impact is relative to the imported dataset, not an absolute measure of profitability. Adding or removing records can therefore change the impact score of existing relationships.
Import item or category, supplier, and annual spend fields. Then select relevant supply-risk factors and score them using current market knowledge, supplier evidence, and operational judgement.
Annual spend is a practical proxy for profit impact. Equal weights assume every selected risk factor is equally important; custom weights should reflect an agreed organisational judgement and must total 100%.
The matrix should support procurement discussion, not replace supplier due diligence. Review strategic or bottleneck items with additional risk, quality, and continuity information.
FAQ
How should I score supply risk?
Consider the number of suitable suppliers, switching effort, lead-time volatility, technical constraints, and exposure to disruption.
How should I score profit impact?
The tool calculates profit impact from annual spend after aggregating matching item-supplier records. Higher annual spend produces a higher impact score within the current dataset.
Should every item be reviewed at the same level of detail?
No. The matrix is useful because it separates routine purchases from items that deserve deeper supplier and risk management work.