Three free tools, a proven methodology. For procurement managers in the manufacturing industry who want structure instead of gut feelings.
Successful procurement organizations don’t think in terms of individual measures, but rather as part of an integrated system. Here is the framework we use at Lighthouse Consulting.
Classify your product category using the Kraljic Matrix and immediately receive specific strategic recommendations from the Gemstone Framework.
Based on the Kraljic Matrix and the Gemstone methodology framework
The framework has given our purchasing team a common language that we never had before. Suddenly, purchasing, engineering, and management were all on the same page when discussing product categories.
Breakdown of the supplier cost structure: What is the price? What is the benchmark? Where are the leverage points for your next negotiation?
Should-cost analysis with industry benchmarks and specific negotiation levers
Enter your product categories, and the tool will automatically generate prioritized cost-saving initiatives based on the Gemstone framework, organized into Waves 1, 2, and 3.
Initiative Generation and Savings Roadmap Based on the Gemstone Framework
All three tools follow the same principle: structured input, instant results, clear recommendations for action. No account, no software, no hassle.
Enter the product category, industry, and relevant evaluation criteria. Runs entirely in the browser; no data is stored.
The tool compares your input with industry benchmarks and the Gemstone framework. Live visualization in the browser.
Concrete strategic recommendations and negotiating leverage—ready to use. Optional: Download the results as a PDF and template.
In 1983, Peter Kraljic developed the framework that is now considered the standard in professional procurement. It classifies materials according to two criteria.
Low supply risk, minimal influence on spending. Many suppliers, easily standardized, no strategic leverage.
High supply risk, low supply. Single source, few substitutes, critical for production.
Low supply risk, high influence on spending. Many suppliers, high competition. Maximum savings potential.
High supply risk AND high expenditure. Complex; requires a critical, long-term partnership.
Every product category strategy is backed by proven optimization techniques. Our tools help you identify the right ones.
Reduce the number of suppliers, cross-location bundling, increase volume per partner
RFQ processes, e-auctions, cost breakdown, benchmarking, payment terms
Best-Cost Country Sourcing, Currency Optimization, International Supplier Base
Standardization, Material Substitution, Design-to-Cost, Value Analysis
Capacity Management, Bottleneck Analysis, Supplier Development
In 2025, a medium-sized manufacturing company (in the automotive sector) commissioned us to restructure its strategic procurement. The starting point: 85 product groups, no structured files, no standardized strategic methodology, and heavy reliance on individual suppliers.
Working with a team of in-house procurement experts and our specialists, all product categories were classified and prioritized using the Kraljic Matrix and assigned individual strategies. Cost breakdown analyses for the top 20 product categories revealed, on average, 14% of unjustified overhead costs.
Details about the client are subject to a non-disclosure agreement (NDA). Results are available upon request for qualified parties.
These tools are backed by over 20 years of real-world procurement experience in the manufacturing industry, as well as a network of specialized procurement experts.
Procurement experience at GETRAG and MAGNA. Global programs in commodity management, supplier development, and strategic procurement.
Digital tools for product category dossiers, cost breakdown analyses, and savings tracking. Everything is measurable and reportable.
Access to specialized procurement consultants for indirect, direct, and supply chain optimization in the DACH region.
Systematically track and record savings and document them in the P&L, using digital dashboards and an audit trail.
Ready for a comprehensive procurement analysis of your company?
Product category reports, cost breakdown workshops, digital savings tracking.
I have more than 20 years of experience in manufacturing and operational management, including many years in strategic procurement at international automotive suppliers. The Kraljic Matrix, the Gemstone Framework, and cost breakdown analyses are not just theory to me, but practical tools I use every day, honed during my time at GETRAG and MAGNA. Today, I help manufacturing companies implement these methodologies in a structured and digital way.
Yes, it’s completely free. No account, no email address, no subscription. All three tools are based on our internal methodology, and we make them available to procurement professionals at no cost. Optionally, you can download the results as a PDF with templates, for which we’ll need your email address.
The Product Category Strategy Builder (Column 1) helps you determine which strategy is right for a product category. The Cost Breakdown Calculator (Column 3) analyzes where potential lies within a supplier’s cost structure. The Savings Wave Planner (Column 4) creates a prioritized savings roadmap across all product groups. Together, these three tools form a complete analysis cycle: first prioritize, then analyze costs, then plan.
A cost breakdown analysis (also known as a should-cost analysis) breaks down the supplier’s price into its cost components: raw materials, manufacturing, machinery costs, overhead, logistics, and margin. By comparing these figures with industry benchmarks, you can immediately identify which items are unusually high and where your room for negotiation lies.
These tools were primarily developed for the manufacturing industry: the automotive industry, mechanical engineering, the electrical industry, the chemical industry, medical technology, and consumer goods. The Cost Breakdown Calculator includes specific benchmarks for six industries. The Kraljic Tool is applicable across all industries.
Yes. In addition to our free tools, we offer comprehensive product category dossiers, procurement program management, cost breakdown workshops, and digital mapping of procurement processes using Smartsheet. Contact us for a no-obligation initial consultation.
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