Conceptual approach for supplier management : case edutainment

Abstract

The aim of this paper is to develop a new framework to supplier segmentation that fits the purpose of case company and considers company’s needs. Developed approach should become purchasers’ instrument to organize and monitor suppliers’ pool based on required suppliers’ characteristics. Moreover, a new approach could be used in supplier development decisions. The framework is developed by using existing literature. The most known studies relate to supplier allocation approach were explored and critically analyzed. Based on previous theoretical studies suitable segmentation framework is proposed and evaluation criteria are provided. Research is based on qualitative methodology. Empirical data given by the case company was gathered by interviews, questionnaires and cross-functional workshops. Based on literature review, empirical data and cross-functional workshops a new suppler segmentation approach was suggested. The segmentation framework contain combination of two approaches: traditional Portfolio matrix with two dimensions: profitability and supply risk and the latest concept of two criteria suppliers’ capabilities and willingness. Thesis provide step-by-step implementation instruction for case company.