Abstract
Present paper analyses strategic options for handling the organizations supplier relations. A strategic segmentation of supplier relations has the aim of focusing the organisations resources effectively when handling the purchase and supplier relations.
The theoretical field of this paper lies within the subject of Supply Chain Management.
In determining the overall approach to ‘suppliers’, is used Transaction Cost- and network theory. In determining how Danish Defence can conduct a strategic segmentation
of suppliers, is used Ellram & Olsens Portfolio Model.
The paper concludes that the Danish Defence can use both the Transaction Cost- and
the network theory in terms of applying an overall supplier handling policy. But given
the characteristic of the Danish Defence purchases, they should lean towards the network theory.
The paper concludes that the Danish Defence can apply Ellram & Olsens Portfolio
Model. The key issues of this model have all been found essential in relation to the
Danish Defence, however additional parameters have been identified and applied to the
model. The author recommends that the Danish Defence applies the reconstructed
model, based on Ellram & Olsens Portfolio Model, in order to focus resources effectively and proportionally when handling purchases and supplier relations.