Supplier segmentation using the strategic sourcing matrix occurs during which step of the strategic sourcing process?

Supplier segmentation using the strategic sourcing matrix is an essential part of the analysis phase within the strategic sourcing process. During this step, organizations assess their suppliers based on various criteria, such as strategic importance and the complexity of the supply relationship. By categorizing suppliers, companies are better positioned to understand which ones present significant opportunities or risks.

The strategic sourcing matrix typically divides suppliers into categories that help firms prioritize their sourcing strategies. For example, suppliers may be classified into groups that warrant closer relationships, more collaborative negotiations, or less frequent engagements based on their value and criticality. This segmentation is vital for developing tailored sourcing strategies that align with overall business objectives.

Following the analysis phase, the planning, sourcing, and reconciliation steps utilize the insights gained but do not involve the initial segmentation process. Thus, identifying the right suppliers and understanding their roles is foundational to making informed decisions in subsequent steps of sourcing.