On how buyers group suppliers

How do buyers classify suppliers? This is a question that even the most experienced sellers seek answers to. Of course, there is no one-size-fits-all classification. Each purchasing organisation adapts its solutions to its needs and supplier management philosophy.

We, however, have decided to tackle this daunting task and present one of the most universal classifications. This is as follows:

Group one: candidates for reduction

Surely no supplier would want to be in it, as it means the inevitable end of the relationship with the buyer. However, it can happen to anyone. How to deal with such a situation? It is certainly not worth living in hope or fooling ourselves into thinking that things will get better. After all, a return to cooperation is unlikely. And it is therefore worth directing your energies to other customers.

Group two: new players

Most buyers adopt conservative supplier management strategies and prefer to solve problems with existing partners rather than implement new ones. However, this does not mean that the moment to start working together will never happen. Therefore, it makes sense to be in the right place at the right time to step in.

Group three: the reserve bench

These are suppliers who are in reserve. This means that they can come into play at any time. However, there is also the likelihood of a reduction. Therefore, a good strategy for all those in this group is to take sensible sales measures so that promotion to the next group becomes possible.

Group four: strategic suppliers

Finding yourself in this group is a real shot in the arm̨ and an opportunity for profitable business. However, being in this group does not mean you can rest on your laurels. It is worth continually developing the business relationship so that you can gain a further advantage over your competitors and reduce the risk of ending up on the bench.   How do you find yourself as a strategic supplier? What can you do to avoid falling out of favour? We answer these questions in our vendor workshops. We invite all those interested to contact us.   Detailed information about the workshop can be found HERE.