Categorizing suppliers in an Indonesian shipping company using kraljic’s portfolio model

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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.

Original languageEnglish
Title of host publicationProceedings of the International Conference on Industrial Engineering and Operations Management, 2021
PublisherIEOM Society
Pages1683-1691
Number of pages9
ISBN (Print)9781792361258
Publication statusPublished - 2021
Event2nd South American Conference on Industrial Engineering and Operations Management, IEOM 2021 - Sao Paulo, Brazil
Duration: 5 Apr 20218 Apr 2021

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
ISSN (Electronic)2169-8767

Conference

Conference2nd South American Conference on Industrial Engineering and Operations Management, IEOM 2021
Country/TerritoryBrazil
CitySao Paulo
Period5/04/218/04/21

Keywords

  • Kraljic Portfolio Model
  • Procurement
  • Purchasing Strategy

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