Mapping of Supplier Segmentation: A Case Study in Furniture Industry

DOI

10.2991/978-94-6463-839-4_130How to use a DOI?

Keywords

ANP; Dematel; Furniture; Segmentation; Supplier

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.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Juliasari Prasetya
AU  - Niki Etruly
AU  - Peni Shoffiyati
PY  - 2025
DA  - 2025/09/16
TI  - Mapping of Supplier Segmentation: A Case Study in Furniture Industry
BT  - Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
PB  - Atlantis Press
SP  - 1659
EP  - 1673
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-839-4_130
DO  - 10.2991/978-94-6463-839-4_130
ID  - Prasetya2025
ER  -