Welcome to the third step of the sourcing process: deciding sourcing tactics. In this case, you’ll move beyond understanding internal needs and begin looking outward, toward the supplier market. This is where approach to market starts to take shape. The goal is to decide how you, as a buyer, will approach the market to get the best outcome for your organization.
This case about deciding sourcing tactics is connected to the course Sourcing Process 2a. You can learn more about Kraljic Matrix in the course Get to know Kraljic and his Matrix.
Content…
This step is often referred to as “deciding sourcing tactics” and is closely linked to Step 4, which involves exploring the supply market through tools like Request for Information (RFI). Before engaging with suppliers, however, it’s important to understand what kind of sourcing strategy best fits your category. That’s where the Kraljic Matrix comes in.
The Kraljic Matrix is a powerful tool that helps buyers differentiate their approach based on two factors: how important the category is to the business (impact on profit), and how complex or risky the supply market is (supply risk). By mapping categories into one of four quadrants—Leverage, Strategic, Bottleneck, or Non-Critical—you can deciding sourcing tactics accordingly. Should you focus on negotiating the best price? Building strong supplier partnerships? Reducing risk by securing backup suppliers? Your positioning in the matrix will guide you.
To bring this to life, we’ve created eight real-world-inspired sourcing cases. Each student group will take on a different case and practice using the Kraljic Matrix to deciding sourcing tactics best fit to each case.
How It Works
Each group receives a sourcing scenario that reflects a realistic business case. Your job is to:
- Assess the category using the Kraljic Matrix
- Justify where it falls on both the supply risk and profit impact axes
- Recommend a sourcing strategy that aligns with the quadrant
- Describe how you would approach the supplier market (e.g., single vs. multiple suppliers, use of RFQ, negotiation style (e-Auction?), length of contract, etc.)
The Eight Sourcing Cases
- Logistics Services at NorthGear Outdoor Equipment
A critical category with high costs and complex supplier requirements. Students must decide whether to consolidate under a single partner or diversify risk. - IT Hardware at EduCity University
A commoditized but high-spend category. The team must decide how to use volume to their advantage in a competitive supplier landscape. - Printed Marketing Material at FashionFix
Quality is key, and the number of capable suppliers is limited. Students explore how to secure a reliable supply without driving up costs. - Cleaning Services at AstraMed Pharmaceuticals
A strategic service tied to regulatory compliance and hygiene. The case calls for a sourcing strategy that balances service quality and operational risk. - Office Furniture at NordicBank
A classic leverage case. Students can focus on consolidating spend, setting ergonomic standards, and using a competitive RFQ process. - Freelance Creative Services at Sparkle Cosmetics
A category with unpredictable quality and limited supplier control. The case explores how to build a flexible yet reliable pool of creative talent. - Corporate Travel Services at NordFinance
A changing category with new expectations around sustainability and digital tools. Students must evaluate both traditional and tech-driven sourcing models. - Temporary Staffing Services at TechBridge
A high-spend, high-dependence category. The team considers managed services versus specialized agency sourcing to improve compliance and fill rates.
What You’ll Deliver
Each group will submit a short report or slide presentation that includes:
- A Kraljic Matrix with the category mapped and explained
- A description of the chosen sourcing tactic (e.g., partnership, tender, dual-sourcing)
- A brief summary of how the team would approach the market based on that strategy
Why This Matters
Choosing the right sourcing strategy is a foundational skill for any buyer. By using a structured tool like the Kraljic Matrix, you’ll learn how to connect internal business needs with external market conditions. This case-based approach gives you the opportunity to apply theory to practice—and prepares you for real decision-making in your future career.
After completing the case and deciding sourcing tactics, we’ll come together as a class to compare strategies across the different categories. This wrap-up session will highlight how different sourcing tactics emerge depending on supply risk, market dynamics, and business impact.
Get ready to think like a strategic buyer. The decisions you make now will influence everything from cost and risk to supplier relationships and long-term value. Good luck!
List of Cases
Group Case 1: Logistics Services at NorthGear
- Category: 3PL services (warehousing, distribution, e-commerce)
- Spend: €7.5M
- Impact: High – affects customer experience, business continuity
- Risk: Medium-high – limited suppliers, switching costs
🧩 Likely quadrant: Strategic
🎯 Challenge: Should NorthGear build a long-term partnership or seek multiple suppliers?
Background – deciding sourcing tactics
NorthGear is a European producer and distributor of high-end outdoor gear (tents, backpacks, hiking apparel). The company operates its own production sites in Finland and Poland and sells products online and through retailers across the Nordics, Germany, and the UK.
The company is now preparing for a new sourcing event related to its 3PL (third-party logistics) services. This includes warehousing, domestic transportation, and e-commerce fulfillment. The current contract is expiring in 9 months.
The procurement team has already completed Step 2 – assessing the current situation, including:
- Spend: €7.5 million annually on logistics
- Suppliers: 1 main 3PL provider + 2 regional courier companies
- Risks: Rising transport costs, delivery delays during peak season, no backup suppliers, low transparency
- Stakeholder feedback: E-commerce team demands faster delivery, warehouse managers report limited flexibility, finance flags cost increases
Now, in Step 3 – deciding the sourcing strategy, you are asked to analyze the situation using the Kraljic Matrix and propose an appropriate approach to the supplier market.
Group Case 2: IT Hardware at EduCity University
- Category: Laptops, monitors, and accessories for faculty and students
- Spend: €3M
- Impact: Medium – necessary for teaching, but not core business
- Risk: Low – many available suppliers with global coverage
🧩 Likely quadrant: Leverage
🎯 Challenge: Should EduCity run a high-volume RFQ with bundled SKUs to drive down cost?
Background – deciding sourcing tactics
Historically, purchases have been made through framework agreements managed by central procurement, but compliance with the agreements has varied. The IT department wants to standardize equipment models, streamline support and maintenance, and ensure alignment with their growing sustainability goals. Procurement now needs to determine how to approach the market effectively while keeping costs under control and improving the user experience.
EduCity is a large public university with over 35,000 students and 3,000 employees across multiple campuses. The university’s IT department is preparing for a new sourcing project for standard IT hardware—including laptops, monitors, docking stations, and accessories. Devices are used by both staff and students, and the university runs regular refresh cycles for faculty equipment, shared labs, and administrative units.
Group Case 3: Printed Marketing Material at FashionFix
- Category: Flyers, lookbooks, window signage
- Spend: €900K
- Impact: Medium – used in store launches and brand awareness
- Risk: Medium – few print suppliers understand fashion branding needs
🧩 Likely quadrant: Bottleneck
🎯 Challenge: How should FashionFix reduce dependency while ensuring quality and availability?
Background – deciding sourcing tactics
FashionFix is a fast-growing fashion retailer with a strong presence in both e-commerce and physical stores. Their marketing department relies heavily on printed materials for seasonal campaigns, product launches, and in-store branding. This includes items like brochures, posters, lookbooks, and promotional signage.
Currently, these materials are printed by several regional suppliers, selected ad-hoc by the marketing teams. Quality levels vary, and so do costs. Some stores have experienced delivery delays or inconsistent color reproduction, which has a direct impact on the brand image. Procurement has been asked to take ownership of the category, aiming to ensure quality, brand consistency, and cost-effectiveness. They must now assess the complexity of the supplier market and propose the right sourcing tactic.
Group Case 4: Cleaning Services at AstraMed Pharmaceuticals
- Category: Facility cleaning in labs, offices, and production zones
- Spend: €2.2M
- Impact: High – linked to hygiene, safety, regulatory compliance
- Risk: High – service inconsistency can disrupt operations, few suppliers meet GMP standards
🧩 Likely quadrant: Strategic
🎯 Challenge: Should AstraMed build a regional supplier partnership or consolidate under one strategic vendor?
Background – deciding sourcing tactics
AstraMed is a pharmaceutical company with operations across Northern and Central Europe. Its facilities include laboratories, cleanrooms, administrative offices, and manufacturing plants. Cleaning and sanitation services are critical to both operational continuity and compliance with Good Manufacturing Practice (GMP) standards.
Currently, each facility contracts cleaning services independently, leading to varied levels of service quality and different contract structures. Some sites have reported gaps in compliance documentation and inconsistent cleaning routines. Senior management has mandated a company-wide sourcing initiative to ensure consistency, transparency, and improved hygiene outcomes. Given the high operational risk and regulatory importance, procurement must carefully evaluate the sourcing strategy.
Group Case 5: Office Furniture at NordicBank
- Category: Desks, chairs, meeting tables
- Spend: €4M
- Impact: Medium – affects employee comfort and image
- Risk: Low – many qualified vendors
🧩 Likely quadrant: Leverage
🎯 Challenge: Should NordicBank use a competitive tender to optimize cost while introducing ergonomic standards?
Background – deciding sourcing tactics
NordicBank is a leading retail and commercial bank operating in Scandinavia. The company is undergoing a major workplace transformation program to modernize its office environments, support hybrid work, and improve employee well-being. As part of this, procurement has been tasked with re-sourcing the office furniture category, which includes desks, ergonomic chairs, meeting tables, and breakout furniture.
The current furniture contracts are fragmented across business units and regions, with multiple suppliers, inconsistent standards, and minimal volume leverage. Several locations have purchased outside the existing contracts. With a large-scale rollout of new workplace guidelines on the horizon, this sourcing event is seen as a strategic opportunity to consolidate spend, raise ergonomic standards, and improve service quality through smarter supplier engagement.
Group Case 6: Freelance Creative Services at Sparkle Cosmetics
- Category: Freelancers for social media content, photography, design
- Spend: €1.1M
- Impact: Medium – drives brand image in digital channels
- Risk: High – talent availability is volatile; inconsistent output
🧩 Likely quadrant: Bottleneck
🎯 Challenge: Should Sparkle create a vetted freelancer pool or seek a creative agency for stability?
Background – deciding sourcing tactics
Sparkle Cosmetics is a premium beauty brand with a strong online presence and a fast-moving product release cycle. Their marketing team frequently collaborates with external creatives—photographers, social media content creators, video editors, and graphic designers—to produce campaign assets for digital and influencer channels.
Currently, creative services are procured informally. Individual marketers hire freelancers from personal networks or past projects, leading to variable quality, missed deadlines, and issues with intellectual property rights. Procurement has been asked to step in and bring structure to this spend category, without limiting creativity or speed. The team must now assess whether to build a formal creative roster, partner with agencies, or continue using freelancers in a more controlled manner.
Group Case 7: Corporate Travel Services at NordFinance
- Category: Travel booking platform + negotiated hotel & flight rates
- Spend: €2.8M (down from pre-pandemic €4.5M)
- Impact: Medium – important for global operations
- Risk: Medium – volatile travel market, increasing ESG pressures
🧩 Likely quadrant: Bottleneck or Strategic
🎯 Challenge: Should NordFinance build a partnership with a travel tech firm or use a traditional TMC?
Background – deciding sourcing tactics
NordFinance is a multinational financial services firm with operations across Europe and Asia. After years of reduced travel due to the pandemic, employee travel is picking up again—especially for client meetings, internal workshops, and training events. However, the landscape has changed: there is now more focus on sustainability, traveler wellbeing, and policy compliance.
The company currently uses an outdated travel booking tool linked to a long-standing travel agency agreement. The contract is nearing expiration, and many employees have begun booking travel independently, leading to poor data visibility and missed negotiated rates. Procurement is exploring how to approach the market—whether to upgrade technology, renegotiate agency contracts, or partner with a travel tech startup—and must first decide what sourcing approach fits best.
Group Case 8: Temporary Staffing Services at TechBridge
- Category: IT and finance contractors
- Spend: €3.5M
- Impact: High – needed to deliver client projects on time
- Risk: Medium – talent shortages, compliance regulations
🧩 Likely quadrant: Strategic
🎯 Challenge: Should TechBridge enter into managed service agreements (MSP) or retain multiple specialist agencies?
Background – deciding sourcing tactics
TechBridge is a consultancy firm delivering technology transformation projects for clients across finance, healthcare, and retail. To support client projects, TechBridge regularly hires temporary IT specialists—software developers, analysts, architects, and project managers—through a network of staffing agencies.
Currently, the staffing category is highly decentralized, with project managers using different agencies based on relationships or speed. Procurement has little visibility into total spend, mark-ups, or performance. This has led to inconsistent rates, compliance risks, and extended onboarding times. As part of a new effort to improve talent acquisition and reduce costs, procurement must define a sourcing strategy—whether to consolidate with a few partners, implement a Managed Service Provider (MSP) model, or introduce stricter controls.
Deliverables for All Groups
Each group will:
- Map the category into a Kraljic Matrix quadrant
- Justify their placement on both axes
- Deciding sourcing tactics (e.g. competitive tender, strategic partnership, dual sourcing, etc.)
- Describe how they would approach the supplier market (use of RFI, negotiation method, supplier selection model, etc.)
Optional Discussion Prompts for Class Wrap-Up
- How do different strategies relate to supplier relationships?
- In which cases does innovation matter most?
- When is cost reduction the primary driver vs when it’s risk reduction or continuity?
- Which cases show potential to move quadrants in the future?
Note: Illustration to the blogpost “Case: Deciding Sourcing Tactics with the Kraljic Matrix” was created by SORA on April 9, 2025.
Recommended bonus reading: Link to original text about Kraljic’s Matrix.