Supplier segmentation in the automotive industry: A dyadic approach of a managerial model

The competitive business environment in the automotive industry has forced vehicle manufacturers (VMs) to improve their relationship strategies towards their suppliers. VMs have implemented supplier segmentation in order to optimise current business activities and existing resource allocations. Supplier selection criteria have also become crucial in order to achieve an appropriate evaluation of suppliers. Models of supplier segmentation and supplier selection criteria underpin theoretically this research. Empirical illustrations of supplier segmentation based on the perspectives of a VM and its suppliers are presented. The principal contributions of this study are the various models therein. One of the models consists of two dimensions: the supplier's commitment to a VM; and the commodity's importance to a VM. In extension, another model of dynamic relationship strategies is introduced. It consists of four relationship strategies towards suppliers in the automotive industry, such as family, business partner, friendly, and transactional. Furthermore, a four‐phase process for the analysis, selection, and managerial decision of a dynamic relationship strategy towards suppliers in the automotive industry is outlined.