Dual Approach to Supplier Segmentation Analysis PPT

This PPT slide, part of the 24-slide Supplier Relationship Management (SRM) - Supplier Segmentation PowerPoint presentation, outlines a comprehensive approach to conducting supplier segmentation analysis, emphasizing the importance of both outward and inward evaluations. The outward analysis involves a detailed examination of suppliers' capabilities, such as innovation, cost structure, and reliability. This bottom-up approach is crucial for identifying the strengths and weaknesses of suppliers in a systematic manner.

The inward analysis complements this by assessing the internal factors that influence supplier relationships. It focuses on the organizational departments and functions that prioritize the capabilities necessary for achieving business objectives. This top-down perspective ensures alignment between supplier capabilities and the company's strategic priorities.

Advanced statistical methods and software are highlighted as essential tools for performing clustering analyses. These techniques help identify patterns among suppliers, allowing for the formation of capability clusters. By linking both inward and outward analyses, companies can maximize the benefits of supplier segmentation. This dual approach facilitates closer partnerships with suppliers that demonstrate the strongest capabilities while also addressing those in weaker segments.

The slide suggests that effective segmentation analysis not only improves supplier relationships, but also enhances overall supply chain management. By understanding which suppliers can either elevate their capabilities or be phased out, organizations can make informed decisions that align with their strategic goals. Ultimately, this analysis serves as a foundation for optimizing supplier relationships and driving value creation across the supply chain.

This slide is part of the Supplier Relationship Management (SRM) - Supplier Segmentation PowerPoint presentation.

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Supply Chain Analysis Supplier Management Supplier Negotiations Supply Chain Management Supply Chain Value Creation Supplier Relationship Management Innovation

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