Stratification of supplier

Customer Loyalty

Opportunistic Customer Core Customers

➢ High Profitability ➢ High Profitability

➢ No Relationship ➢ Sustained Relationship
➢ Low Cost to Serve ➢ Low Cost to Serve
Cost to do business ➢ High Volume Cost to serve
➢ Low Volume

Marginal Customers Service Drain Customers

➢ Low Profitability ➢ Low Profitability

➢ No Relationship ➢ Sustained Relationship
➢ High Cost to Serve ➢ High Cost to Serve
➢ Low Volume ➢ High Volume
Sales Volume