Differential procurement management strategy based on material classification

Manufacturing companies have a wide variety of materials. A differentiated procurement management strategy based on the Kraljic model is proposed to address the procurement management of different materials. According to the characteristics of materials, from the two dimensions of profit impact and supply risk, materials are divided into four categories: strategic materials, leveraged materials, non-critical materials and bottleneck materials. From the above strategic materials, the core materials with extremely high supply risks are classified. By analysing the characteristics of the five categories of materials, the corresponding procurement strategy, supplier management strategy and inventory strategy are proposed. Through precise and differential procurement management, the purposes of ensuring the stability of material supply and reducing costs and supply risks are achieved.