Journal of Purchasing and Supply Management - Critical Review - Management Assignment Help

Assignment Task:

Task:

abstract
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.

Introduction
Firms frequently procure a large quantity and variety of products, works and services to execute their operational responsibilities and satisfy various plans and policies of the organization.

While these procurement activities entail significant time and monetary resources of the firm, they also carry a fair degree of risk for the firm. The purchasing strategies, therefore, tend to have a large influence on the overall performance of the organization. There is, thus, an imperative that the firms employ a professional purchasing approach.

Towards this goal, Kraljic (1983) in his seminal work proposed a purchasing portfolio modeling approach, whose general idea was minimizing supply vulnerability and making the most out of buying power, where the strategy was based on classifying purchase itemsinto four portfolio quadrants vis-a-vis their relative contribution-towards supply risk and profit impact for the firm. As such, the Kraljic Portfolio Matrix (KPM) aims at matching external risks and opportunities with the internal needs of the buying firm (Dubois and Pedersen, 2002).

The basic KPM framework

Kraljic (1983) suggested that all commodities and all buyer– supplier relationships are not to be managed in the same way. Kraljic’s purchasing portfolio model aims at developing differen- tiated purchasing and supplier strategies through classifying commodities on the basis of two dimensions: supply risk and profit impact (‘low’ and ‘high’). The general idea is to classify the commodities as per their preferred purchasing strategy that leads to minimize the supply risk and make most out of the buying power to enhance the purchasing performance and the yield of organizations. The result is a 2  2 matrix and a classification in four categories: bottleneck, non-critical, leverage, and strategic commodities

This Management  Assignment has been solved by our Management  Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics.Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.