Thirty eight years ago, back in 1983, Peter Kraljic penned ‘Purchasing Must Become Supply Management’ for HBR, debuting the purchasing portfolio matrix that has since become a procurement mainstay. While many limitations have since been observed with Kraljic’s methodology, he made a series of prescient observations about the strategic potential of the procurement function, especially in times of market volatility and extreme disruption. This article examines how those insights remain just as relevant – if not more so – in 2021, as Supplier Collaboration becomes a crucial lever for procurement functions looking to leverage their key supplier relationships and secure competitive advantage in the face of mounting disruption.
