Supplier Classification Overview
In the IBM® Emptoris® Supplier Lifecycle Management application, you can segment, structure, and classify the existing and potential suppliers in the Supplier Classification module.
Supplier Classification is based on factors such as the results of the supplier qualification, performance evaluation, and strategic importance. Supplier classification is the basis for a company’s supplier portfolio development and risk management. An objective classification of suppliers helps to develop a comprehensive supplier portfolio.
You can use the Supplier Classification Module for:
- Classifying the suppliers into different classes. For example, Preferred, Accepted, Restricted, and Rejected.
- Developing a strong supplier portfolio that is based on performance evaluation, strategic importance, and supplier qualification results.
The scope for supplier classification is defined by the following
elements:
- Supplier
- One or more categories or organizations