Summary Part 4: buying and selling in a complex B2B world

International sales & procurement


Part 4: Buying and selling in a complex B2B world

Kraljic Matrix

Purchasing portfolio analysis




Leverage products: Strategic products
 Alternative sources of supply available  Critical for product’scost price
 Substitution possible  Dependence on supplier

Competitive bidding Performance based partnership
Routine products Bottleneck products
 Large product variety  Monopolistic market
 High logistics complexity  Large entry barriers
 Labour intensive

System contracting + E-commerce solutions Secure supply + search for alternative

, Kraljic Matrix: example Brewery and Airline



• Which routine products are basic for a • Give some leverage products of
Duvel/Ryanair? Duvel/Ryanair?




• What is essential but rather scarce • What will be the stategic product of
(bottleneck)? Duvel/Ryanair?




Kraljic Matrix: testcase exam !  Starbucks

Leverage products Strategic products
Buildings Coffee machines
Routine products Bottleneck products
Napkins Coffee beans
Straws
Cups