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Maximizing Supplier Relationships: Kraljic Matrix & Supplier Integration

Explore the Supplier Relationship Continuum to leverage products based on cost, risk, and availability. Learn how to differentiate between routine, strategic, and critical products and optimize relationships using the Kraljic Matrix. Discover the competitive and collaborative criteria for managing supplier relationships effectively. Dive into the Supplier Perception Matrix and stages of supplier integration, illustrated through a mini case study of Zoo Buyer.

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Maximizing Supplier Relationships: Kraljic Matrix & Supplier Integration

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  1. The Supplier Relationship Continuum

  2. Leverage products High or low unit cost Higher expenditure Low risk if unavailable Many suppliers Many near substitutes Routine products Low unit cost Low expenditure Low risk if unavailable Many suppliers Many near substitutes Strategic products High unit cost High expenditure High risk if unavailable Few suppliers Few near substitutes Critical products Low unit cost Low expenditure High risk if unavailable Few suppliers Few near substitutes Kraljic Matrix (modified)

  3. Competitive Criteria Many competing suppliers Standard products Wide supply markets No need for high degree of trust No supplier power, switching suppliers is easy Competitive bidding for contracts Collaborative Criteria Creation of supply chain synergy - rather than individual links in the supply chain Joint and mutual search for greater efficiency and competitiveness Agreed shared objectives and planning for the future Elimination of waste Equality of relationship - openness and transparency, understanding of expectations, needs met Effective exit strategy Competitive versus Collaborative Relationships

  4. Supplier perception Matrix

  5. Stages of Supplier Integration into the Buying Organisation

  6. Mini Case Study Zoo Buyer

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