Abstract
This exploratory study aims to develop a taxonomy of purchasing strategies at the purchase category level. We define strategies based on competitive priorities, an approach that is common in operations management literature, but very novel in purchasing. Analysing data collected from 318 manufacturing firms in ten countries through the use of cluster analysis, we identify five purchase category strategies: “Emphasise All, Cost Management, Product Innovation, Delivery Reliability, and Emphasise Nothing”. We subsequently investigate how this purchase category strategy taxonomy is related to the Kraljic matrix, a purchasing portfolio model utilised frequently in practice. We find that some strategies are more likely to be implemented in certain quadrants of the matrix but that within each quadrant, it is possible to implement various purchase category strategies in an effective way. This finding empirically validates our argument that existing portfolio models alone do not provide sufficient guidance for defining appropriate strategies.