Kraljic Matrix Analysis Automation Overview

The Kraljic Matrix is probably one of the most widely known category management tools in procurement since 1983.

And yet, in many organisations, the analysis process remains surprisingly primitive.

1. Someone exports spend data into Excel.

2. Category managers manually assign scores.

3. Someone redraws the matrix in PowerPoint.

4. Eventually, the organisation receives a static picture which becomes outdated almost immediately.

Meanwhile:

• supplier markets change,

• operational dependencies evolve,

• sourcing risks fluctuate,

• and nobody wants to repeat the exercise every month because the process itself is painful.

This creates an interesting paradox.

Many procurement teams discuss AI, predictive analytics, and digital transformation, but strategic category segmentation is still statically managed through spreadsheets, PowerPoint screenshots, and subjective scoring.

So, I attempted to automate the process using standard Microsoft 365 tools, because having it in place means the ability to run it more than once a year, when category plans are due.

What the Workflow Does

The solution runs on:

• Microsoft SharePoint Online

• Microsoft Power Automate

• Microsoft AI Builder

• Microsoft Outlook

• Excel Online

The workflow:

1. imports category data from an Excel template,

2. calculates spend-share-based weighting,

3. evaluates Profit Impact and Supply Risk, including combined scoring (like SpendScore, which represents the category share of the total spend) and complex AI scores,

4. classifies categories into Kraljic quadrants,

5. generates AI commentary with the analysis outcome verification, category management advice, and risk assessment,

6. creates a visual SVG-based matrix,

7. builds a structured HTML report, stores the report in SharePoint for audit purposes, and distributes it automatically through Outlook.

The entire process is auditable and SharePoint-native.

Process ideation by the Business Automation Coach

Other than the initial concept, the entire ideation process has been facilitated by the custom GPT - the Business Automation Coach.

It helps to turn a perception into a well-articulated process description and workflow structure. Then you can vibe code on your own or ask someone to.

Why SVG Instead of Power BI or Chart.js

One unexpectedly annoying problem was report rendering.

Most charting approaches work poorly inside generated HTML reports, SharePoint previews, or email-distributed files.

Chart.js introduced compatibility issues during report sharing and previewing.

Therefore, the workflow dynamically generates the matrix directly in SVG.

This turned out to be much more reliable:

• cleaner rendering,

• better portability,

• simpler SharePoint compatibility,

• and no dependency on external libraries.

The workflow now creates:

• dynamic bubble coordinates,

• proportional bubble sizes based on spend share,

• colour-coded quadrants,

• and linked category legends automatically.

  
  

AI Should Not Merely “Talk”

One of the biggest mistakes in procurement AI experimentation today is using AI as a decorative text generator.

In this workflow, AI is expected to contribute to judgment.

The AI scoring evaluates:

• supplier concentration,

• sourcing complexity,

• operational dependency,

• continuity exposure,

• spend materiality,

• and market dependency.

The workflow then generates:

• category commentary,

• procurement recommendations,

• and sourcing risk signals.

Importantly, the AI assessment does not fully replace procurement judgment.

The final scoring combines:

• procurement manager scoring,

• operational stakeholder scoring,

• automated spend-share scoring,

• supplier dependency logic,

• and AI assessment layers.

This creates a much more balanced category positioning model.

The More Interesting Part

The more interesting observation is not technical. It is organisational.

Most procurement departments already own the licenses required to build something like this.

The barrier is usually not technology. The barrier is process imagination.

Many procurement processes still assume:

• manual preparation,

• manual consolidation,

• manual reporting,

• and manual interpretation.

But category management is actually a very strong candidate for workflow automation because:

• the logic is structured,

• scoring models are repeatable,

• governance rules are definable,

• and the outputs are highly standardised.

  
  

Current Roadmap

The next development steps may include:

• historical matrix movement tracking,

• quarterly category trend analysis,

• supplier market intelligence inputs contributing to the scores,

• and Power BI dashboard integration.

  
  

Video Overview

Final Thought

The Kraljic Matrix was never intended to become a yearly PowerPoint ritual.

It was supposed to support procurement decision-making.

The more repeatable, transparent, and automated the process becomes, the more useful the model actually appears.

If you want to test this process at no cost, please follow this link.