Title: Strategic alignment of product portfolio and supplier management

Authors: Jordan Verrollot; Arto Tolonen; Janne Harkonen; Harri Haapasalo

Addresses: Industrial Engineering and Management, University of Oulu, Oulu, Finland ' Industrial Engineering and Management, University of Oulu, Oulu, Finland ' Industrial Engineering and Management, University of Oulu, Oulu, Finland ' Industrial Engineering and Management, University of Oulu, Oulu, Finland

Abstract: Product portfolio management (PPM) and supplier management (SM) are integrally linked through products, buy items and related suppliers. However, the connection and alignment between these important activities are not particularly highlighted in the extant literature. Hence, the main objective of this study is to clarify the challenges in connecting PPM and SM to illustrate how they can be aligned. This study recognises and links the roles of PPM and SM to analyse and manage the technical product portfolio, buy items and suppliers according to aligned strategic targets. PPM impacts the performance of SM by regularly renewing the product portfolio, and therefore allowing SM to manage only the buy items and related suppliers that create the highest strategic fit, maximised value and balance for the company. This study recognises the need to align PPM and SM to enhance competitiveness and to focus on the strategic and profitable products and associated suppliers.

Keywords: product portfolio management; strategic alignment; supplier management; supply management.

DOI: 10.1504/IJMED.2017.086913

International Journal of Management and Enterprise Development, 2017 Vol.16 No.4, pp.337 - 364

Received: 04 Apr 2016
Accepted: 06 Feb 2017
Published online: 02 Oct 2017 *

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