Jurnal Sistem dan Manajemen Industri
Vol. 8 No. 2 (2024): December

Formulating purchasing strategies with kraljic portfolio matrix: A case study in an investment management company

Ulkhaq, M. Mujiya (Unknown)
Pratiwi, Trisna Nagris (Unknown)



Article Info

Publish Date
05 Dec 2024

Abstract

Procurement is important in a company because it will directly affect how much a company can reduce costs. One of the activities in the procurement process is purchasing. PT XYZ has never conducted a supplier analysis or analysis of items purchased from suppliers. PT XYZ only purchases items daily; if managed properly, it can save the company's expenses and improve supplier relationships. This study aims to formulate purchasing strategies by implementing the Kraljic Portfolio Matrix (KPM). KPM has been widely applied to various cross-sectoral companies to manage suppliers more effectively. KPM divides items provided by suppliers into four quadrants based on supply risk and profit impact to minimize supply risk and maximize purchase profit. Thirty-five sup-pliers were analyzed in this study. The result shows that of the four KPM quadrants, three quadrants are filled, namely the non-critical quadrant (containing 12 suppliers), bottleneck (14), strategic (9), and none of the suppliers located in the leverage quadrant. Purchasing strategies based on these three quadrants are then formulated, and a total of seven strategies are produced. An analysis of the dominance of buyers and suppliers is also given to find out the relationship and balance of power between these parties.

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Journal Info

Abbrev

JSMI

Publisher

Subject

Engineering Industrial & Manufacturing Engineering Transportation

Description

This journal aims to publish the results of research in the field of Industrial Engineering is published twice a year, managed by the University of Serang Raya. The scope of Sciences covers Operations Research, Manufacturing System, Industrial Management, Ergonomics and Work System, Logistics and ...