Supplier Segmentation

The type of relationship that develops between a supplier and a customer depends on the strategic importance of the goods or services provided and the competencies, capabilities and performance of the supplier. 

We look to utilize the same approach across all product categories and suppliers, and assess each supplier on their strategic and tactical positioning towards Amway and ABG, ensuring the focus of ongoing activity is aligned with business needs.

Each supplier is measured across multiple criteria to ensure correct categorization within the Supplier Segmentation model. This ensures that each supplier will have focused activities specifically designed to develop, improve or optimize operational performance, or build upon overall strategic relationships.
The criteria that each supplier is measured upon include:

• Supplier Segmentation Criteria

On assessment of these criteria and resultant scoring, specific programs will be worked upon with the supplier to achieve operational performance levels required for business needs.

The segmentation classification for each supplier will define the supplier positioning: