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Descripción: Market Segmentation
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This Agreement is used to define the understanding between a supplier of products or merchandise and their client.
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Summary The Larger Supplier Base Company should do the supplier Segmentation every 2 to 5 years time interval. Based on the Supplier Risk and relative spend , suppliers can be segregated as such as Routine Supplier, Collaborative Supplier , Bottleneck Supplier and Strategic supplier. Author:
Company: Company: Accenture th
Created on: 1 on: 19 9 May 2011
Author Bio Kalandi Nayak is SAP SRM (Supplier Relationship Management) Consultant in Accenture with 7 years experience in SAP MDM Catalog, Sourcing and Procurement (P2P). He has completed 3 Implementation project in large Companies in Auto Industry, Healthcare and Oil and Gas Industry.
Manage Risk and Vulnerability of Supplier Maximize Supplier Performance Develop Preferential Relationship with Supplier Have Close Supplier Management
Too Many Suppliers Little Time Spent per Supplier Supplier Data Error Difficult to Analyze Supply Base Difficult to reduce Supply Base Data Cleanup required Maverick Suppliers Added Disconnected GPO (Global Procurement Officer) IT Tools
Supplier Segmentation Benefit
Ensures optimal allocation of limited management time and resources. Helps determine what kind of relationship to develop for different types of suppliers. Ensures internal alignment such as supplier management roles, responsibilities, actions. Guides sourcing and negotiation strategy, relationship management structure and supplier activity. Helps clarify and manage supplier expectations Avoid any potential disruption of production.
Obtain Major cost savings and maximize value.
Degree of interdependence Level of spend by amount. The Volume of procurement from the supplier.
Strategic importance of supplier Number of BUs served by a supplier Complexity and frequency of changes in supplier requirements Type and number of products or services a supplier provides Cost/difficulty of switching suppliers The criticality of the service level necessary The supplier’s technology capability and compatibility of process implementation The supplier’s anticipated quality level.
Factors need to be considered for Supplier Segmentation.
Product Service Quality Continuity Capacity Complex city of Specification Social Responsibility Supplier’s Relationship with Competitors Financial Stability Environmental Issues Supplier also a customer
Dependent on Market environment Dedicated relationship manager
relationship manager; internal customer coordination committee Robust and frequent, with some executive contact Joint effort; customer investment driven by switching costs Joint and frequent; time horizon varies by context Understand and Monitor Medium
“Win/Win” Maximize joint gain and good precedent Long term
supplier oversight board; dedicated relationship manager Robust and multilevel, with senior executive contact Joint effort, equal investment
Integrated, frequent, and long term focused Safeguard
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