Mapping of Supplier Segmentation: A Case Study in Furniture Industry

Juliasari Prasetya, Niki Etruly () and Peni Shoffiyati
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Juliasari Prasetya: Politeknik Industri Furnitur dan Pengolahan Kayu
Niki Etruly: Politeknik Industri Furnitur dan Pengolahan Kayu
Peni Shoffiyati: Politeknik Industri Furnitur dan Pengolahan Kayu

A chapter in Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022), 2025, pp 1659-1673 from Springer

Abstract: Abstract Furniture companies are classified as manufacturing firms. On average, manufacturing companies allocate over 50% of their expenditures to the purchase of raw materials, which are supplied by various suppliers. Supplier segmentation involves grouping suppliers based on similarities among them. This segmentation is particularly key for company with numerous suppliers, as it generates distinct segments that each require separate management strategy. The objective of this research is to create a supplier segmentation based on the prioritized variables of capability and willingness, and to determine appropriate strategies for each segment. Supplier capabilities can be evaluated based on product quality, pricing, monitoring technology, innovation, and other factors. Willingness can be assessed through criteria such as communication openness, commitment to continuous improvement in products and processes, and long-term relationship orientation. The method employed to select the variables for weighting is focus group discussion (FGD). Subsequently, the chosen variables will be weighted using analytical network process (ANP). This research is conducted in a company that produces pipes, focusing on the segmentation of raw material suppliers. The segmentation results indicate that there are no suppliers in Segment 1, one supplier in Segment 2, three suppliers in Segment 3, and ten suppliers in Segment 4. These segmentation results will serve as a basis for evaluating supplier development strategies within each segment.

Keywords: ANP; Dematel; Furniture; Segmentation; Supplier (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-839-4_130

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