Supplier segmentation method for selection of resilience-enabling procurement strategies

Supply chain exposure to disruptions often increases because of strategic choices made to improve other objectives like cost or lead time. Performance trade-offs resulting from strategic choices can be assessed using simulation, but a complete analysis is difficult to perform due to the extensiveness of many supply chains and the limited availability of management resources. A reliable, resource-efficient tool is needed for selecting the best procurement strategy for each supplier, given the existing sourcing environment. Supplier segmentation is a tool used to identify procurement strategies for groups of suppliers with similar needs. However, the existing methods of segmentation focus on strategy selection during normal operating conditions, and do not consider the effects of the chosen strategy during periods of disruption. In this work, a case study is introduced representing a global supply chain for a laser printer. The system is examined using agent-based modeling and simulation with the objective of measuring the effects of strategic variables on the resilience of the supply chain, given a set of external conditions. As the results are developed, a segmentation guideline will be derived whereby the best strategy for resilience for any supplier can be identified given knowledge of the external conditions.