Vendor segmentation is a critical process fot optimizing IT Procurement and enhance strategic partnerships. This presentation outlines a logical framework for developing an effective vendor segmentation strategy. It begins by defining key criteria for segmentation, including vendor performance, risk assessment, and alignment with organizational goals. The framework emphasizes the importance of data-driven analysis, categorizing vendors into distinct segments based on quantitative metrics and qualitative insights. By employing tools such as the Kraljic Matrix and supplier scorecards, it becomes easier to prioritize vendor relationships, tailor engagement strategies, and allocate resources more efficiently. The proposed framework not only aids in identifying high-value vendors but also fosters collaboration and innovation within the supply chain ecosystem. The presentation will show:

• How to develop a logical framework for differentiation between high-cost, high-impact vendors and low-risk, low-cost vendors?
• What criteria should be used to determine whether a vendor is critical to the business, and how should this influence negotiation strategies?
• How to allocate time and resources across a large vendor base in a most effective way, while ensuring key vendors receive the attention they require?