Supplier Segmentation

Supplier segmentation is the process of dividing suppliers into groups based on their characteristics. This allows businesses to target specific suppliers with specific marketing and procurement strategies. There are many different ways to segment suppliers, but some common methods include by product type, by geography, and by supplier size.

Product Type Segmentation: This method involves grouping suppliers based on the types of products they sell. For example, a company that sells both food and office supplies would want to segment their suppliers by product type. This way, they can develop separate procurement and marketing strategies for each product type.

Geographic Segmentation: This method involves grouping suppliers based on their geographic location. For example, a company that has suppliers in both the United States and China would want to segment them by geography. This way, the company can develop separate procurement and marketing strategies for each region.

Supplier Size Segmentation: This method involves grouping suppliers based on their size. For example, a company may want to segment their suppliers into small, medium, and large categories. This way, the company can develop separate procurement and marketing strategies for each group.