2nd South American International Conference on Industrial Engineering and Operations Management

Categorizing Suppliers in an Indonesian Shipping Company Using Kraljic’s Portfolio Model

Manik Mahachandra
Publisher: IEOM Society International
0 Paper Citations
1 Views
1 Downloads
Track: Supply Chain Management (SCM)
Abstract

The goal of the study is to categorize the goods and services requested from a ship in an Indonesian shipping company into four quadrants using Kraljic Portfolio Model. Currently, the company groups the goods and services (commodities) based on its critical nature and functionality. However, current grouping does not signify the purchasing strategy when the company wants to acquire each commodity. In this study, the commodity scores for their supply risk and potential profit impact are determined using Fuzzy multi-attributes. Three procurement experts in the company are involved in scoring the supply risk and profit impact attributes and a total of seven respondents score a list of group commodities, and the results are used to find out the performance scores with respect to supply risk and profit impact dimensions. The group commodities are then placed in the Kraljic’s Portfolio Model with multidimensional scaling. The results reveal that crane parts, generator parts and rigging, mooring, and lifting equipment are strategic items, item bunker fuel oil and lube oil is leverage items, valves, pump parts, etc. are bottleneck items, and non-critical items are stationary, and food provision. The categorizing will help the company to make a proper type of relationship with the supplier so the procurement process can be more reliable.

Published in: 2nd South American International Conference on Industrial Engineering and Operations Management

Publisher: IEOM Society International
Date of Conference: April 5-8, 2021

ISBN: 978-1-7923-6125-8
ISSN/E-ISSN: 2169-8767