Positioning model of purchasing based on Kraljic's purchasing portfolio matrix and factor analysis

Kraljic's purchasing portfolio matrix is the most important analytical tool in sourcing supply management. Considering the abstract and the difficulty of quantification of the matrix's two dimensions, the indicators of the matrix was established and quantified in the study. The materials purchased were classified from Kraljic matrix's dimension respectively by using factor analysis. The final location of materials in Kraljic's purchasing portfolio matrix can be confirmed from the first two categorized results. Finally, a case was presented to demonstrate the effectiveness of the model.