Abstract
PurposeThe purpose of this article is to develop a new model called strategy segmentation methodology (SSM) by combining the Kraljic portfolio matrix (KPM) and the supplier relationship model (SRM) so that the buyer company can effectively conduct its relations with its suppliers.Design/methodology/approachThe importance weights of the criteria defining the dimensions of each model are calculated with the single-valued neutrosophic analytical hierarchy process (SVN-AHP) method. Subsequently, the derived importance weights are employed in the single-valued neutrosophic technique for order preference by similarity to ideal solution (SVN-TOPSIS) method to obtain the scores of the suppliers and their supplied items. In order to illustrate the feasibility of the proposed methodology, a case study in the machinery industry is performed with the related comparative analysis.FindingsThe implementation of SSM enables to formulate various strategies to manage suppliers taking into account the items they procure, their capabilities and performance and the supplier–buyer relationship strength. Based on the proposed strategies, it is concluded that the firm in the case study should terminate its relationship with six of its suppliers.Originality/valueAlthough KPM has become the basis of purchasing strategies for various businesses, it neglects the characteristics of suppliers and the buyer–supplier relationship. In this study, KPM is integrated with the SRM approach presented by Olsen and Ellram (1997) to overcome these disadvantages of KPM. The novel integration of the two approaches enables the realization of a robust and reliable supplier classification model.
Subject
Business and International Management,Strategy and Management
Reference64 articles.
1. An extension of neutrosophic AHP–SWOT analysis for strategic planning and decision-making;Symmetry,2018
2. Leveraging procurement-related knowledge through a fuzzy-based DSS: a refinement of purchasing portfolio models;Journal of Knowledge Management,2019
3. Application of a purchasing portfolio model to define medicine purchasing strategies: an empirical study;Socio-Economic Planning Sciences,2022
4. Application of a purchasing portfolio model in a construction company in two distinct markets;Journal of Management in Engineering,2014
5. Evaluation of vendors ranking by EATWOS approach;Journal of Advances in Management Research,2014
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献