The Kraljic Matrix is one of the most effective ways to deliver accurate supplier segmentation. In 1983, Peter Kraljic devised a means to segment the supplier base in the article in HBR.

This segmentation model will not be applicable to every business. Think about your company’s unique needs and objectives. Consider how you can apply them to your segmentation matrix. Communicating ...

This starts with supplier segmentation. The Kraljic Matrix is the default for many managers. This asks companies to examine their suppliers on two dimensions: profitability and risk.

The article highlights how supplier risk analysis methods can help manufacturers working with hundreds of suppliers to identify risks.

Assign risk categories based on supplier segmentation and identify suppliers likely to disrupt the supply chain. Associate with suppliers who were already vetted and approved during disruptions.