SUPPLIER MATRIX - THE 7 TYPES OF SUPPLIER PROFILE

As promise.......

These suppliers which i mentioned on my previous blog, I will want to measure their relationship from the perspective of :-

- Supplier Relationship Management
- Innovation and Development


These two categories are viewed from the perspective of a customer angle, i.e. if these are my suppliers, how should i view them in term of asset value to my organization.


 High Relationship / High Development Matrix 

The Leader type 1 - i broke down leader into two type of leader. There will be leader who build their leadership in the industry based on close collaboration with customers. For them, customers are a treated equally as important and valuable and they tend to view customers as "king maker" and paramount importance.

The Innovator type 1 - again i also view there are two types of innovator, These are the supplier who will innovate their process in partnership with their customer. They used their superior knowledge and asset in the industry they are in to develop customers products.


High Relationship / Low Development Matrix

The Newbie - as new comers, they will build up relationship for long and short term access to the market. However, since they are new, they tend to be also a follower and thus have disadvantage in development of new package for their customers

The Follower - been a follower, i tend to rate them as a little of  a "copycat" and a good example will be the many companies set up in China nowadays and in the previous decade to capture the market based on copying competitor ideas. We can see how i able to link the Newbie and the Follower in one space.

Low Relationship / High Development Matrix

The Leader type 2 - they controlled the market by almost a monopoly and care little for customer needs. The only thing you will appreciate such suppliers is that they will provide the material or technology you needs and instead of they go to you, you as the customer will go to them because they are the leader and controlled their industry segment.

The Innovator type 2 - a typical technological company which innovate non stop and people will go after their product like a nothing like it before. They send information and knowledge to the public as a public relationship cum advertising program. Non existence eye to eye contact per Se.

Low Relationship / Low Development Matrix

The Protected -  since they are like the term i branded them, little motivation to build relationship, They may have the technological background but they will only develop what they need to market and not based on what their customer really need.

The Complacent - a typical organization who have little planning on their part. Satisfied with the number of account they have and often do not invest in program for improvement or expansion of capacity. They will be content to do the current products and will only wake up if feel threatened bur very often too late.

The Competitor - as the name sounded well, no need to elaborate. Why your competitor will collaborate with you? (to know why we have competitor in your supplier list, refer to yesterday blog)


Which type is your preference?

Actually suppliers can move in all direction depending on the maturity of the relationship. A newbie can be a leader tomorrow and so does a leader can be a follower.