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Procurement professionals widely use purchasing portfolio models to tailor purchasing strategies to different product groups’ needs. However, the application of these approaches in hospitals and the impact of a pandemic shock remain largely unknown. This paper aims to assess hospital purchasers’ procurement strategies during the COVID-19 pandemic, the effects of factor-market rivalry (FMR) on strategies and the effectiveness of purchasing portfolio categorizations in this situation.

This qualitative study of hospital purchasing in the Netherlands is supported by secondary data from official government publications. Semi-structured interviews were conducted with 13 hospital purchasers at large hospitals. An interpretative approach is used to analyze the interviews and present the results.

The findings reveal that product scarcity forces purchasers to treat them as (temporary) bottleneck items at the hospital level. The strategies adopted largely aligned with expected behavior based on Kraljic’s commodity management model. Adding the FMR perspective to the model helped to further cluster crisis strategies into meaningful categories. Besides inventory management, increasing supply, reducing demand and increasing resource coordination were the other common strategies. An important finding is that purchasers and governments serve as gatekeepers in channeling FMR, thereby reducing potential harmful competition between and within hospitals.

The devastating experience of the COVID-19 pandemic is unveiling critical weaknesses of public health-care provision in times of crisis. This study assesses the strategies hospital purchasers apply to counteract shortages in the supply chain. The findings of this study emphasize the importance of gatekeepers in times of crisis and present strategies purchasers can take to assure the supply of resources.

No research has been conducted on purchasing portfolio models and FMR implications for hospitals during pandemics. Therefore, the authors offer several insights: increasing the supply risk creates temporary bottleneck strategies, letting purchasers adopt a short-term perspective and emphasizing the high mobility of commodities in the Kraljic commodity matrix. Additionally, despite more collaboration uncovered in other studies regarding COVID-19, strong rivalry arose at the beginning of the pandemic, leading to increased competition and less collaboration. Given such increased FMR, procurement managers and governments become important gatekeepers to balance resource allocation during pandemics both within and between hospitals.

The purpose of this paper is to use the relative power and total interdependence concepts as an intervening theoretical lens to explain why and how sustainable supply management (SSM) initiatives by manufacturing firms differ across the Kraljic matrix according to purchasing capability.

Tested hypotheses by subjecting survey data from 338 manufacturers on buyer-supplier relationships in Europe and North America to regression analysis.

Shows three situations where relative power and total interdependence determine the effectiveness of purchasing capabilities. First, sustainability programs impact supplier compliance in all Kraljic categories but bottleneck items. Second, there are significant trade-offs between lower cost and higher social and environmental supplier compliance for noncritical components. Third, strategic alignment of sustainability objectives between corporate and supply function levels only leads to improved financial performance for strategic components.

Further research could take power and dependence into account to explain when and how purchasing capabilities focussed on sustainability can be achieved.

Shows how supply strategists could devise-tailored approaches for different purchasing categories with respect to power and dependence when pursuing economic, social and environmental objectives in combination – the triple bottom line – along their supply chains.

Illustrates and provides a theoretical explanation for why SSM is a purchasing capability that must vary across purchasing categories defined by different situations of power and dependence.

The purpose of this paper is to reduce impact on profit and supply risk, for strategic part by defining appropriate purchasing strategies using Kraljic portfolio model (KPM) approach.

A five-step approach of KPM is used to identify strategic parts. The attributes affecting impact on profit and supply risk are then identified. A structured questionnaire is prepared for each attribute. Likert scale having weights from 1 to 5 is used to select method of measurement for each response. The overall score of attributes for dimensions “supply risk” and “impact on profit” interpret the position of the part, i.e., “strategic part,” “leverage part,” “bottleneck part” or “non-critical part” in the Kraljic matrix. The part having highest impact on profit and supply risk is to be considered as strategic part for defining the purchasing strategies.

This paper outlines a practical solution to the problem of designing/defining purchasing strategies for development of supplier. Impact on profit is reduced by cost reduction and quality improvement whereas supply risk reduced by improving delivery time and suppliers profile.

The proposed methodology is applied to a boiler industry to identify the strategic parts and focus on strategic suppliers, which are fewer in number but having larger impact on profit and supply risk. The “Body” part of ball valve assembly of the boiler is considered for the study. However, it can be extended for selecting and evaluating of suppliers strategy for other parts of the boiler. Not only boiler industry sector but also other companies also benefit from the results of this study by implementing the purchasing strategies as formulated in the KPM.

The Kraljic matrix has been largely used in many different industries like automobile, manufacturing, construction, oil and gas, etc., as an efficient tool for developing differentiated purchasing strategies. However, its application on parts procured by boiler industry is unknown, as well as the lack of systematical approach on criteria prioritization which is one of the key issues of the methodology. This work explores the output usefulness and its applicability on ball valve assembly projects.

The purpose of this paper is to provide a flexible and extensible model for the classification of suppliers, within the purchasing guidelines and market trends of an Italian small company, leader in the production of street lamps. The model is applied to identify critical supply chains with the final objective of lead-time reduction.

The model is obtained by the application of the purchasing portfolio analysis through the construction of Kraljic matrix. Profit impact and supply risk criteria are selected according to the main company requirements, and then prioritized by the analytical hierarchy process (AHP). Finally, supply chain lead-times are analyzed with Gantt diagrams.

The application of the model allows the determination of company criticalities in terms of high lead-times and of the involved suppliers. The analysis of critical suppliers positioning in the Kraljic matrix allows the definition of some possible strategies to implement for lead-time reduction.

Purchasing portfolio analysis and Kraljic matrix are practical instruments to quickly frame company purchasing situation, but their application is not simple due to the numerous and different factors involved, especially in small and medium enterprises (SMEs), where resource are scarce and several constraints limit operations. The objective of the research is the development of a practical tool for strategic purchasing, simple and robust to be implemented in SMEs, with limited resources and access to quantitative supplier data.

Evaluation criteria definition is one of the most difficult phases, such as their univocal and quantitative comparison. The problem of selecting and prioritizing both quantitative and qualitative criteria for suppliers classification is overcome with the combined application of Kraljic matrix and AHP. The newly integration of the two methodologies allows the realization of a reliable and robust model for suppliers classification, which can be easily adapted to company business strategy changes.

The purpose of this article is to develop a new model called strategy segmentation methodology (SSM) by combining the Kraljic portfolio matrix (KPM) and the supplier relationship model (SRM) so that the buyer company can effectively conduct its relations with its suppliers.

The importance weights of the criteria defining the dimensions of each model are calculated with the single-valued neutrosophic analytical hierarchy process (SVN-AHP) method. Subsequently, the derived importance weights are employed in the single-valued neutrosophic technique for order preference by similarity to ideal solution (SVN-TOPSIS) method to obtain the scores of the suppliers and their supplied items. In order to illustrate the feasibility of the proposed methodology, a case study in the machinery industry is performed with the related comparative analysis.

The implementation of SSM enables to formulate various strategies to manage suppliers taking into account the items they procure, their capabilities and performance and the supplier–buyer relationship strength. Based on the proposed strategies, it is concluded that the firm in the case study should terminate its relationship with six of its suppliers.

Although KPM has become the basis of purchasing strategies for various businesses, it neglects the characteristics of suppliers and the buyer–supplier relationship. In this study, KPM is integrated with the SRM approach presented by Olsen and Ellram (1997) to overcome these disadvantages of KPM. The novel integration of the two approaches enables the realization of a robust and reliable supplier classification model.

The purpose of this paper is to demonstrate the application of vendor rationalization strategy for streamlining the supplies and manufacturing cycle time reduction in an Indian engineer-to-order (ETO) company. ETO firms are known for a large number of vendors, co-ordination hassles, rework problems and its impact on cycle time and operational excellence.

The research demonstrates the case-based application of Kraljic’s matrix for supply and leverages items, on-the-job observations, field visits, discussions and analysis of supplies reports.

The study guides on the rationalization of supplies and the necessary strategic alignments that can significantly reduce supply risk, costs, manufacturing and delivery cycle time along with co-ordination hassles. The study depicts the challenges of ETO environment with respect to supplies, and demonstrates the effectiveness of vendor rationalization application for the case company and weaknesses of commonly practiced vendor management approaches.

To be competitive, companies should rationalize supply items and vendors based on the nature of items and their subsequent usage by applying Kraljic’s matrix-based classification. The immediate implication of vendor rationalization is misunderstood as reducing supply base, but it does much more and includes review of supplies, nature of items and strategic alignments, leading to win-win situation for company and suppliers.

For the rationalization of supplies, while procuring and dealing with vendors, executives should envisage engineering nature of components, considering cross-functional requirements and integration of components in context to ETO products/projects environments. There is a dearth of studies focusing on vendor rationalization aspects in ETO setups in fast-developing country context.

The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes' achievement targets. These situations force humanitarian aid agencies to develop new strategies for effectively managing their supplies. The purpose of this paper is to illustrate the foundation of humanitarian supply chain resilience through the development of an adapted Kraljic portfolio model.

Action research was used to adapt and validate the Kraljic portfolio model to the development aid context. The research team worked with a humanitarian aid agency in developing criterions and used Analytical Hierarchical Process (AHP) in weighting those key criterions.

The adapted portfolio model was able to evaluate purchases done by the aid agency by incorporating different perspectives related to the strategic importance of purchase and supply vulnerability. In particular, development aid programmes require large supplies annually. Better classification offers improved visualisation of purchases, leading to a more precise adoption of mitigation strategies and policies to minimise supply disruption risks.

Adapting the Kraljic portfolio model is a stepping-stone to building humanitarian supply chain resilience. The proposed humanitarian supply chain resilience framework is based on the foundation that current humanitarian supply chain needs to be re-engineered. In order to re-engineer, the supply base strategy must first be revisited.

Many aid agencies do not have a holistic view on their purchases and commonly apply a transactional classification of purchases that only considers the consumption values. Purchasing strategies mostly focus on cost minimisation, whereas risk mitigations have been disregarded. The proposed portfolio model overcomes these drawbacks. Societal impact may be limited but development aid agencies will be able to offer more reliable aid delivery as part of their mandate.

The proposed portfolio model is among the first tool to guide humanitarian aid agencies to develop procurement strategies to alleviate supply disruptions and increase development aid programmes resilience.

Organizations are identifying strategic supply chain relationships as a major source for competitive advantage. Interest in the concept is becoming prevalent in many industries, including new product development within the engineering sector. Collaborative supplier relationships are being used in new product development as a tool to share the development burden and reduce the development life cycle. The purpose of this paper is to develop a business process to act as a roadmap for optimum supplier integration.

An Engineering case organisation (Genco Inc.) is explored to provide an understanding of the extent and timing of supplier involvement, within new product development. Subsequently a high level business process is developed to govern early supplier integration, within a product development phase gate model.

The findings suggest and the business model strives to create a more holistic view of supplier integration; extending the scope beyond the individual firm‐centric factors, the paper develops the importance of supplier collaboration, design for supply chain and consideration of the overall value network. The business process creates a move towards defining supplier commodity types pre‐project launch, strategically timing and managing the extent of supplier integration.

The business process can be used to govern supplier integration by categorising commodity type. Each supplier classification can be phased into the development project to maximise the efficiency of development collaboration. The resulting process also acts to share accountability to create future roadmaps and accountability for future competitive advantage.

Currently, to the best of the authors' knowledge, an individual case organisation has not been documented with regards the extent of supplier involvement or timing, nor has an early supplier involvement (ESI) business process been developed.

This paper aims to model a decision support system (DSS) that could overcome the oversimplified, subjective, compensatory decision logic of extant purchasing portfolio models (PPMs) by leveraging the firms’ procurement-related knowledge base.

The DSS was developed through a fuzzy-based approach, whose design and application were framed within a case study in a multinational company.

The application of the fuzzy-based DSS to a product class suggests investing in the relationship with two specific suppliers and to loosen the relationship with a third one.

Exploiting the fuzzy set theory and fostering the elicitation of procurement-related knowledge from the decision-makers, the DSS effectively tackles the concerns about the existing PPMs by including strategic-oriented priorities and contextual constraints in the evaluation.

The recommendations in output from the DSS are feasible, more analytical and easy to interpret, enabling knowledge sharing, group decision processes and better decision-making.

To the best of the authors’ knowledge, this manuscript is the first attempt to effectively integrate traditional PPMs with contextual, strategy-related factors to refine the purchasing directions and make them objective.

The purpose of this paper is to examine how to align purchasing portfolio management with sourcing negotiation styles.

The authors have adopted two-step field tests: a case study; and a follow-up experimental test with 77 sourcing professionals.

The authors note that Kraljic Portfolio Matrix (KPM) provides a valuable guide for determining sourcing negotiation styles (i.e. competitive negotiation for leverage items, collaborative negotiation for strategic items and accommodative negotiation for bottleneck items). Interestingly, effective buyers adopt right negotiation styles based on the switching costs of changing suppliers, the dependence level on specific suppliers and the availability of alternative suppliers.

This study shows that aligning purchasing portfolio management with sourcing negotiation styles improves the chances of effective buying outcomes. Practical implications suggest that successful buyers move beyond interpreting generic predictions of the KPM framework and rather implement specific negotiation styles to maximize the potential benefits of purchasing portfolio management.