Supplier Segmentation


Supplier segmentation is the process of dividing suppliers into distinct groups. The concept describes how this can be done and explores how organisations can benefit from segmenting their supply base.

Technique Overview

Supplier Segmentation Definition

Supplier segmentation is a process of dividing suppliers into distinct groups with different needs and characteristics or behaviour (Kotler et al., 2005).

Supplier Segmentation Description *

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Business Evidence

Strengths, weaknesses and examples of Supplier Segmentation *

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Business Application

Implementation, success factors and measures of Supplier Segmentation *

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Professional Tools

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Further Reading

Supplier Segmentation web and print resources *

Supplier Segmentation references (4 of up to 20) *

  • Bueler, D. (2006) Supplier Segmentation: The Tool for Differentiation and Results. Proceedings of 91st Annual International Supply Management Conference. May. [Online] Available at: www.ism.ws/files/Pubs/Proceedings/JHBueler.pdf [Accessed 5 January 2012].
  • Day, M., Magnan, G. and Moeller, M. (2010) Evaluating the Bases of Supplier Segmentation: A Review and Taxonomy. Industrial Marketing Management, Vol. 39, pp. 625–639.
  • Dyer, J., Sung Cho, D. and Chu, W. (1998) Strategic Supplier Segmentation: The New Best Practice in Supply Chain. California Management, Vol. 40(2).
  • Kotler, P., Wong, V., Saunders, J. and Armstrong, G. (2005) Principles of Marketing. Harlow: Pearson Education.

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