Procurement Strategies Using Kraljic Portfolio Model And Supplier Relationship Matrix in a Biomanufacturing Company

Abstract

Uncertainty in the supply chain of Post-COVID-19 is a challenge for manufacturers. The risk of supply can be minimized if the company is able to place a robust strategy and establish good relationships with suppliers. Kraljic’s portfolio model is a popular approach for material classification. Research typically focus on a case study and modification in the matrix attribute or dimension. Research that combines Kraljic’s matrix and supplier relationship is still uncommon especially research on Bio-Manufacturing companies which have a large and complex variety of materials. This research aims to formulate the strategy and action plans in procurement. Data processing using the Multi-Dimensional Scaling approach. There are 19 types of materials researched, as well as 40 different suppliers. Kraljic matrix divides the material into four quadrants strategic, bottleneck, leverage, and noncritical quadrant. Procurement Strategies and Action plans developed from each materials quadrant. The Supplier relationship matrix divided the supplier of each material into four quadrants mutual attractiveness, supplier’s attractiveness, buyer’s attractiveness, and lack of attractiveness. By integrating Kraljic’s matrix and supplier relationship matrix resulting 3 strategies are Strategic, Collaborative, and transactional relationships. From three strategies develop 16 action plans. Gap analysis is used to compare the action plans with the existing condition. According to the research result can be shown the strategy to manage material and suppliers related with the condition of organization.