Supplier Segmentation


The Opportunity

Retailers are constantly seeking new insights, thought leadership and resources from the supplier community to help them win in today’s hypercompetitive market. With the proliferation of retail formats, suppliers have several distribution options including their own direct-to-consumer channel. As such, leading retailers recognize the need to form strategic relationships with the appropriate suppliers. The challenge often lies in the criteria related to selecting the right supplier partners:

  • How do I determine the value of suppliers today and in the future?
  • How should I measure their contribution to my business considering their loyalty, objectivity, exclusive offers, discretionary funding, talent, insights, tools, ideas, brands, values, etc.?
  • How do measure their alignment with my strategy?
  • How do I assess their desire to see me succeed in the marketplace?

TPG’s proprietary supplier segmentation model insures that our retail clients are properly assessing and selecting the optimal partners to support their strategy and success.


Supplier Management


What We Do

TPG’s retail team has the experience and proprietary tools to help our retail clients evaluate, segment and build productive relationships with their diverse suppliers. A partial list of our consulting services includes:

  • Supplier Segmentation Criteria: Identification and definition of the critical comparative components to fuel the supplier segmentation.
  • Segmentation Model & Analytics: Development and execution of the underlying quantitative and qualitative analysis that will create the foundation of comparison among the array of suppliers. Identification of segmenting factors.
  • Segmentation Objectives & Expectations: The objectives and expectations of the retailer-supplier relationship, roles and responsibilities for both parties by supplier segment.
  • Segmentation Communication: The development of an internal and external communication plan to initiate and solidify the newly desired retailer-supplier relationships.

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