Supplier segmentation

CM1 Customar segmentation supply chain strategy CM2 Manufacturing strategy and supply chain management CMS Supplier segmentation supply strategy... 

Supplier assessment and development arms to assess the supplier segments and to differentiate them. Supplier segmentation determines the strategic importance of materials to establish a functioning relationship and also evaluates the supplier. 

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... 

A further development of customer/supplier relationship management is represented by customer interaction models (ClMs) and the supplier interaction models (SIMs). Besides the relationship that is aspired to with respect to a given customer/supplier segment CIMs and SIMs define ... 

Which processes are carried out for a specific customer/supplier segment... 

The following method describes a way of determining the relationship level and thereby the information level within the supplier and customer relationship. In this way one can determine different factors, such as customer/supplier relationship, supply/demand risk and uncertainty, dynamic product innovation and technology, global operations and network and business process complexity according to the different customer and supplier segments and their relationship level ... 

The chapter has described the need for customer and supplier relationship management with regard to the supply chain differentiation process. In the following the PC Manufacturing Inc. aims to identify the hierarchy of different customer and supplier segments and align the CRM as well as SRM to this hierarchy. 

In order to assess the AS-IS configuration of the supply chain holistically, aspects of customer and supplier segmentation, supply chain strategy, manufacturing-related aspects, supply chain processes, supply chain governance, and the efficiency of supply chain management integration are covered. The contents of these topics are briefly summarized below in Fig. 9.2. 

Analyzing the suppliers Determination of supplier segments Categorization of product modules and classification of suppliers... 

This section deals with the role different suppliers play within a firm. In a first step, the presents of different supplier bases is evaluated. Moreover, some general questions are presented about supplier segmentation. Second, a questionnaire is presented to classify a company s AS-IS suppliers based on a purchasing portfolio matrix developed by (Kraljic 1983). 

Moreover, it shall be determined whether different supply bases already exist for each of the identified customer segments. If this is the case, the questionnaire in this section should be applied to record the supplier segments for each customer segment. However, if a uniform supply base is applied on the different customer segments, the supplier segment shall be recorded once. 

Taking the topic of supplier segmentation into account, the question arises whether suppliers are currently segmented. If this is the case, additional information is useful about the present number of supplier segments. 

A last open question focuses on the use of a differentiated supplier management. The question arises whether different sourcing strategies can be applied to each individual supplier segment. Furthermore are there different relationship schemes present for the different supplier segments In other words, some suppliers are managed at arm s length" and other suppliers have a close relationship... 

Table 9.4 characterizes the four module categories by four central issues such as type of items purchased, key performance criteria, time horizon of the relationships with the supplier, and typical sources of each considered module of a product group. It shall be checked which statement best classifies a company s AS-IS supplier segment. The column which is most applicable to the strategy then classifies the module and thereby the supplier segments. 

Supplier segments Leverage Noncritical Bottleneck Strategic... 

Now, it shall be stated which supply chain source configuration is appropriate for the regarded customer segment. This shall be determined for every supplier segment within the focused customer segment. The exact characteristics of the possible configurations SI, S2, and S3 are outlined in CM4. 

Taking the connection to the supplier segments into account, the same procedure as in the previous section shall be applied in order to determine the level of relationship as well as the level of information sharing. 

In a first step, the relationship between a firm and its supplier segments shall... 

Please describe the relationship between you and your supplier segments. 

Table 9.11 Questionnaire determining the level of information sharing between a company and its supplier segments...

Customer segmentation Supplier segmentation Product modularization Activity allocation Supply chain governance Supporting activities... 

Governance supplier relationship management selection per supplier segment 10.7.2 7.2, 7.3 1-15 10.7... 

---