Circular procurement: Motives and objectives in the Kraljic Matrix

The current economic system results in waste and elimination of value because it is a linear system aimed at short-term goals. A solution to this is the circular economy, which focuses on higher efficiency and the recycling of waste, raw materials and energy through closed circles. Supply Value regards circularity as an innovative way of purchasing. Previous studies by Supply Value show, among other things, the bottlenecks and success factors of circular procurement [Bottlenecks and Success Factors] and in what way support for circular procurement can be created [Creating support].

However, little is known about the influence of the market on the application of circular purchasing strategies. In the current literature much is to be found about the circular economy on the one hand and the influence of the market on purchasing strategies on the other. The link between market conditions and circular purchasing strategies has not yet been investigated. Supply Value has conducted extensive research into this link. In the research the following research question was central:

"What is the effect of a company's market conditions on the applicability of circular purchasing? "

The Kraljic model was taken as the starting point in the research, supplemented with theory on circular procurement. By means of 9 interviews it was investigated which motives exist to apply circular purchasing in every quadrant from the Kraljic matrix. In addition, we also looked at the difficulties encountered by companies in every quadrant and what is needed to deal with these difficulties.

Would you like to know more about the application of circular purchasing and the effect of market conditions on this? Are you curious about the model behind this and the insights that the results of the research have brought about? Download the entire article below in which the effect of the market conditions of a company on the applicability of circular procurement is explained. Or contact us via: / 088 – 0555 999