Certified Professional Contract Manager (CPCM) Practice Exam 2026 - Free CPCM Practice Questions and Study Guide

The Kraljic Matrix is a strategic tool used in supply chain management and procurement that helps organizations determine how to manage their supplier relationships based on two key variables: spend value and market risk. Spend value refers to the amount of money an organization invests in different procurement categories, while market risk encompasses the potential challenges or uncertainties associated with sourcing from specific suppliers or markets.

By plotting these variables on the matrix, organizations can classify their purchases into four quadrants: strategic, bottleneck, leverage, and non-critical. This classification enables businesses to develop tailored strategies for managing supplier relationships effectively, ensuring that they maximize value and minimize risks in their procurement processes. Through this systematic assessment, organizations can allocate resources appropriately, focusing on strategic suppliers that offer critical inputs while managing risks associated with more volatile market conditions.