ARTICLE IN PRESS

Journal of Purchasing & Supply Management 9 (2003) 207–216

Handling measurement issues and strategic directions in Kraljic’s purchasing portfolio model
Cees J. Geldermana,*, Arjan J. Van Weeleb a b

Open University of The Netherlands, P.O. Box 2960, 6401 DL Heerlen, The Netherlands Eindhoven University of Technology, P.O. Box 513, 5600 MB Eindhoven, The Netherlands

Received 4 March 2002; received in revised form 25 November 2002; accepted 27 July 2003

Abstract Kraljic’s purchasing portfolio model, which was introduced in 1983, still is the dominant approach in the profession. Contrary to the growing use of the Kraljic matrix, there are problems and unanswered questions with respect to measurement and strategic issues. Based on explorative case studies, the critique of Kraljic’s model has been disputed and refuted to a large extent. This study describes the solutions of experienced practitioners to the problems which have been put forward in literature. The case studies point out which measurement methods are possible and which supplier strategies are feasible, including additional strategic movements of commodities within the matrix. The research findings indicate that there is no simple, standardized blue print for the application of the portfolio analysis. It requires reflecting on results, critical thinking and sophistication of purchasing management. r 2003 Elsevier Ltd. All rights reserved.
Keywords: Purchasing strategy; Portfolio management; Supplier relations

1. The Kraljic approach Recently, purchasing portfolio models have received considerable attention from academic and business world (e.g. Gelderman and Van Weele, 2002, 2003; ( Leonard and Spring, 2002; Ahman, 2002; Dubois and Pedersen, 2002; Zolkiewski and Turnbull, 2001; Nellore . and Soderquist, 2000; Wynstra and ten Pierick, 2000; Gelderman, 2000, 2003; Croom, 2000; Bensaou, 1999; Lilliecreutz and Ydreskog, 1999; Olsen and Ellram, 1997). Obviously, not all products