Segment Suppliers in Khuzestan Steel Company Tending to Mitigate Risks

International sanctions imposed on Iran have had negative effects on currency rates, transport and payment methods in last decade. Fluctuations in these factors have increased supply risk for K.S.C like many Iranian companies. Segmenting suppliers and determining modern strategies to communicate is an essentially step to mitigate supply risk. As a case study, this research has developed a segmentation method for the K.S.C suppliers owing to reduce supply risk. This model position the suppliers in a quadrant matrix including strategic, bottleneck, leverage and routine basis on the volume of spend and supply risk. Supply risk compute by the Risk Priority Number (RPN). Finally, determine a profile, developing a program and actions to meet business objectives are presented for each category.

Keywords:

Supplier Segmentation , Strategic , Bottleneck , Leverage , Routine