Badr Alghamdi
العربية
Tools

Kraljic matrix: a low value part with one source is not routine

Two axes, seven gates, and every boundary declared by you. Type what the item does to profit and what one source does to supply, and it lands in one of four named situations with the gate that put it there shown beside it. Then move the count of sources you would genuinely order from tomorrow, and watch the name change at one whole number, or refuse to change at all.

Live result

At your boundaries this item reads Bottleneck, held there by one gate: you named 1 qualified source. At 2 it reads Non critical.
At your boundaries this item reads Bottleneck, held there by one gate: you named 1 qualified source. At 2 it reads Non critical.

The two situations this item can occupy

The two situations this item can occupySource count 1 is in Bottleneck. Counts 1: Bottleneck, 2: Non critical, 3: Non critical, 4: Non critical, 5: Non critical, 6: Non critical, 7: Non critical, 8: Non critical, 9: Non critical, 10: Non critical. changes at 2 Non critical.StrategicLeverageBottleneckNon criticallowhighhighlowsupply risk across, profit impact up

Try an item

1sources

Sources you would genuinely place an order with tomorrow.

Edit the item and your boundaries
The item
percent
percent

Finished output unavailable or unacceptable while the item is missing.

per day
$
calendar days
calendar days
calendar days
Your boundaries

A value that lands exactly on its boundary counts as meeting it.

percent
percent
per day
$
sources
calendar days
calendar days
calendar days

The seven gates

Profit impact: low

Annual spend share
Your value
0.9000 percent
Your boundary
5.0000 percent
Holds
no
Finished item effect
Your value
10.0000 percent
Your boundary
50.0000 percent
Holds
no
Downtime cost per day
Your value
$1,000.00
Your boundary
$5,000.00
Holds
no

Supply risk: high

Qualified alternative sources
Your value
1
Your boundary
1 or fewer
Holds
yes
Switching time
Your value
10 calendar days
Your boundary
30 calendar days
Holds
no
Substitution time
Your value
5 calendar days
Your boundary
30 calendar days
Holds
no
Lead time
Your value
20 calendar days
Your boundary
60 calendar days
Holds
no

Qualified alternative sources

sources
sources
sources
sources

It does not check the values in between.

How the answer sits across the values sampledA rail of the 10 values sampled, from 1 source to 10 sources in steps of 1 source. No other integer in the range leaves the situation this item is named as at Bottleneck. Every admissible integer in this range was checked.first change2 sources1 sourceon the page

No other integer in the range leaves the situation this item is named as at Bottleneck. Every admissible integer in this range was checked.

No other integer in the range leaves the situation this item is named as at Bottleneck. Every admissible integer in this range was checked.
The answerBottleneck
Values sampled1 source to 10 sources, 10 values, step 1 source
Holds from1 source, lowest sampled
Holds to1 source
Nearest value that changes it2 sources
The answer thereNon critical

What an unchanged region does and does not prove is set out in a short lesson.

Every admissible integer in this range was checked. Values outside the range remain unchecked.

Formula, example, limits, source, version

The formula in words

Profit impact is high when at least one typed impact value meets its boundary.

Supply risk is high when the qualified source count is at or below your at risk count, or switching, substitution, or lead time meets its boundary.

There is no weighted score, hidden calibration or tie break. Every comparison is inclusive.

Worked example

No impact gate is true, so profit impact is low.

Impact factTypedYour boundaryGate
Annual spend share0.9000 percent5.0000 percentfalse
Finished item effect10.0000 percent50.0000 percentfalse
Downtime cost per day1,000.005,000.00false

One supply gate is true, so supply risk is high. Low profit impact with high supply risk gives Bottleneck.

Supply factTypedYour boundaryGate
Qualified alternative sources1at risk at 1 or fewertrue
Switching time10 days30 daysfalse
Substitution time5 days30 daysfalse
Lead time20 days60 daysfalse

The source count replay holds everything else and walks 1 through 10.

At 1 the source gate is true. At 2 it is false and no other supply gate holds, so the two axes are low and the name becomes Non critical.

The nearest changed count is 2, one step away.

What this does not model

It names a quadrant from the values and boundaries you typed and shows the gate that held it there. It does not choose a sourcing strategy, and it never prints one.

The placement is only as honest as the alternatives you were willing to count and the boundaries you were willing to defend.

It knows nothing about price, quality, the relationship, or what any of the four names has ever been taken to imply. It moves one input at a time and never a combination.

The four names

Arabic termPublished English term
استراتيجي
Strategic
تفاوضي
Leverage
عنق زجاجة
Bottleneck
اعتيادي
Non critical

Boundary

It names the situation and gate implied by the typed values without choosing a sourcing strategy, and the placement is only as honest as the alternatives counted and boundaries defended.

Source anchor

Peter Kraljic, Purchasing Must Become Supply Management, Harvard Business Review, September 1983. The published article sets out the two axis structure used here.

Ordered calculation trace

  1. Scale the two percentages to four decimal places and the two costs to cents.
  2. Compare each profit fact with its paired boundary.
  3. Compare the source count and three day facts with their paired supply boundaries.
  4. Set each axis high when at least one of its gates holds.
  5. Name the quadrant from the two axis levels.
  6. Replay whole source counts from 1 through 10 and select the nearest changed name.

Calculation version

1.0.0

The whole record prints. Your browser can save it as a PDF instead of printing it.

This page will never label a supplier, a buyer or a reader as good, bad, safe, mature or compliant, and it will never print a recommended response. It describes one item's placement under a rule you declared. It does not determine a sourcing action, an approval, an award or a relationship.

Related

Low value single source record

Kraljic matrix: a low value part with one source is not routine

Accepted inputs

Item name
Seal kit
Annual spend share
0.9000 percent
Finished item effect
10.0000 percent
Downtime cost per day
$1,000.00 per day
Qualified alternative sources
1
Switching time
10 calendar days
Substitution time
5 calendar days
Lead time
20 calendar days
Annual spend share Boundary
5.0000 percent
Finished item effect Boundary
50.0000 percent
Downtime cost per day Boundary
$5,000.00
Most sources you would still call at risk
1
Switching time Boundary
30 calendar days
Substitution time Boundary
30 calendar days
Lead time Boundary
60 calendar days

All results

Answer form
Named quadrant
Named situation
Bottleneck
Item name
Seal kit
profit
low
supply
high
Annual spend share
no
Finished item effect
no
Downtime cost per day
no
Qualified alternative sources
yes
Switching time
no
Substitution time
no
Lead time
no
Changed field
Qualified alternative sources
Source count before change
1
Source count after change
2
Situation after change
Non critical

Sweep of Qualified alternative sources

The assumption
Qualified alternative sources
Values sampled
1 to 10 sources, 10 values, step 1
The answer
Bottleneck
Holds across
1 to 1 sources
Nearest change
2 sources, where it becomes Non critical
Reading the boundary
The sweep samples only the values you entered. Between samples the answer is not checked, so read the boundary as observed, not proven.

Record fields

Calculation version
1.0.0
Boundary
It names the situation and gate implied by the typed values without choosing a sourcing strategy, and the placement is only as honest as the alternatives counted and boundaries defended.
Ordered calculation trace
Scale the two percentages to four decimal places and the two costs to cents. Compare each profit fact with its paired boundary. Compare the source count and three day facts with their paired supply boundaries. Set each axis high when at least one of its gates holds. Name the quadrant from the two axis levels. Replay whole source counts from 1 through 10 and select the nearest changed name.
Source anchor
Peter Kraljic, Purchasing Must Become Supply Management, Harvard Business Review, September 1983

This page will never label a supplier, a buyer or a reader as good, bad, safe, mature or compliant, and it will never print a recommended response. It describes one item's placement under a rule you declared. It does not determine a sourcing action, an approval, an award or a relationship.

Calculation version: 1.0.0

Badr Alghamdi · badralghamdi.com/tools/low-value-single-source