How to segment your suppliers for Supplier Collaboration
To create a Supplier Collaboration program, you need to consider what suppliers you need to work with, along with what capacity you are going to work with them in.
Supplier Collaboration Segmentation Model
You will need to segment your supplier base into its various cohorts that address your business value goal. This is not something that you’ll run across your whole supply base all at once, but instead, through a phased approach.
Suppliers can be broken into the following categories and mapped according to the level (low to high) of innovation and business alignment; and their relative impact on revenue and spend, also from low to high.