Journal of Supply Chain Management

Strategic Direction through Purchasing Portfolio Management: A Case Study Members Only Content

Contrary to the growing number of academic publications on purchasing portfolio models in literature, little is known about their actual use. Kraljic's portfolio model, which was developed in 1983, seems to be the dominant approach in the profession. This model, however, does not provide guidelines for strategic movement of commodities and/or suppliers within the matrix. Based on an in-depth case study, derived from a major Dutch chemical company, the use of portfolio techniques in purchasing has been explored and described. The results indicate that Kraljic's portfolio approach, when elaborated and tailored, indeed allows for sufficient guidance for developing effective purchasing and supplier strategies. The case study points out what supplier strategies are feasible and what conditions should be met in order to make them happen.

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