TableData
Table 1: Comparison of the Kraljic, Svensson, and Alticor Models.
Attributes
Kraljic Model (1983) Svensson Model
(2004)
Alticor Model (2005)
Type of
Model
Arm's Length Model Partner Model
Combination of the
Arm's Length and
Partner Models
X Axis
Supply Risk
Supplier's
commitment
Multi-dimensional
Y Axis
Profit Impact
Commodity's
importance to the
buyer
Multi-dimensional
Supply Risk It is assessed in terms
of availability of raw
materials, number of
suppliers,
competitive demand,
make-or-buy
opportunities, and
storage risks and
substitution
possibilities
Supply risk is high
when supplier's
commitment is
low, supplier is a
market leader or
large player, or
sells significant
amount of raw
material to the
buyer
Supply risk is high
when the manufacturer
is in a deep relationship
with supplier (e.g., coinvesting, co-product
development)
The Profit
Impact
When commodity's Profit impact is not the
importance is low only determinant for
It is defined in terms
of the volume
purchased,
percentage of total
purchase cost, or
impact on product
quality or business
growth
Segments
for standard items,
profit impact is
low due to low
cost and a large
number of
alternative
suppliers in the
market
Strategic, bottleneck, Friendly, business
leverage, non-critical partner,
transactional,
family
Resource
For strategic
Involvement suppliers, resourceinvolvement
(manpower, money)
is high
For family
suppliers,
resourceinvolvement is
high
segmenting suppliers.
An important supplier
can also have a low
profit impact but supply
to an important product
(e.g. highly innovative
products)
Partner, preferred,
approved, conditional,
eliminate
For partner suppliers,
resource-involvement is
high