Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1020865 | Journal of Purchasing and Supply Management | 2012 | 8 Pages |
This article proposes a more objective methodology to classify and position commodities (works and services) in the Kraljic Portfolio Matrix (KPM) in a continuous scale around the two dimensions of supply risk and profit impact—the two dimensions which mainly influence the choice of a firm's purchasing strategy. Fuzzy multi-attribute scoring is used to assign performance scores to different commodities on supply risk as well as profit impact attributes. With a multidimensional scaling approach the commodities are placed in the KPM. An application of the proposed approach is attempted on commodities procured by the Rural Development Department of a state government in India.
► The Kraljic Portfolio Matrix (KPM) supports firms in developing purchasing strategies. ► A more objective approach for positioning commodities in the KPM is proposed. ► Fuzzy multi-attribute decision making assigns weights to supply risk and profit impact. ► Commodities are positioned through multidimensional scaling (MDS).