Understanding segmentation of non-core bussiness suppliers
(R2024-122705)

AUTHORS

Maria Ana Morais, ISEG; Jose Novais Santos, ADVANCE, ISEG – Lisbon School of Economics and Management, Lisbon University

ABSTRACT

This study aims to understand the supplier segmentation of non-core business suppliers. Through a case study focusing on the corporate travel department in a firm from the energy sector, this study emphasizes the importance of segmenting and managing the non-core business supplier portfolio within companies. Segmentation considers various dimensions: volume of purchases, quality, security of service delivery, supplier’s irreplaceability, stability, uncertainty, and ability to innovate and be digital. The management of the supplier portfolio differs based on the segment, particularly in terms of the relationships with important suppliers.