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Suppliers performance analysis of a manufacturing firm supported by cluster analysis

This paper aims to explore a multivariate analysis technique, the cluster analysis, proposed and applied to classify vendors of a company from the automotive industry according to their performance profiles. The research method was the exploratory case study. The company concentrates its strengths in the core business activities, transferring to vendors tasks like fabrication of items or subsystems assembling. This practice resulted in a supply network organized to feed the focal activity. The company assesses vendors in a regular basis according to criteria and indicators of quality, logistics, and commercials. Data are available in the company's database, but there is no intelligence able to comply it and generate information to support strategy formulation in vendors managing. The proposed methodology has divided 107 vendors in up to seven clusters with similar performance characteristics under the judgements criteria. This procedure was used to formulate strategies to each specific cluster. The procedure has also divided vendors within the criteria leading to tactical and operational choices. We end the paper discussing the case and its implications on the focal activity management.

Multivariate performance measurement; multivariate data analysis; cluster analysis; suppliers performance metrics; supply management


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