What Is a Preferred Vendor?

Carajec model: Also called Carajec matrix. Earliest appeared in Peter Carajek's "Purchasing Must Be Included in Supply Management" article, published in the Harvard Business Review, September-October 1983 As an asset investment management tool, the concept of a portfolio model was first introduced by Harry Markowitz in the 1950s. In 1983, Carla Jack pioneered the concept of this combination into the field of procurement. This matrix is used as an analysis tool for a company's purchasing portfolio.

Carla Jack Model

1. Purchase portfolio analysis preparation.

2. Determine the specific principles of revenue impact and supply risk.

3. Decide the level of the procurement portfolio analysis (does the analysis go deeper into individual projects, or is it conducted in groups? Is the analysis conducted in departments, business units, or the company as a whole?)

4. Enter the mastered data information into the Carajek matrix.

5. Analyze and discuss the results.

6. Restriction for each matrix

Purchasing portfolio analysis.

Promote the procurement department to focus on the most important procurement items.

Outsource non-critical projects and leveraged projects.