Alternative Approach to Managing Suppliers The ABC Analysis

Leverage items Computer case Strategic items Motherboard 

Noncritical items Screen Keyboard Bottleneck items Ch et 

The measurements classically used for an ABC analysis in this context are, for example, purchasing volume, the characteristics of the supplier with regard to technological, qualitative or financial matters, as well as the strategic importance of the supplier. However, Gelderman and van Weele (2005) criticize the fact that, due to the exclusive concentration on financial value, ABC analyses lack the treatment of costs associated with weak product performance. 

The assignment to supply chain strategies yields the same conclusions as with the other types of supplier segmentation presented above the more important the supplier is for the focal firm (A supplier), the more likely it is that it will be 

The aim of SCO Guide CM3 is to emphasize the role that suppliers play in a firm s planning process. The differenf mefhods fo analyze buyer-supplier relationships are implemented and methods to analyze the relationship with regard to the purohasing prooess are made known. Lastly alternative ways of managing suppliers with the ABC analysis are proposed. 

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