ABSTRACT

Professor Arjan Van Weele developed the idea of the Dutch windmill framework in the early 2000s. As a combination of the Peter Kraljic portfolio analysis and supplier preferencing matrices, it defines 16 different types of business-to-business relationships by assessing the level of buyer-supplier interdependence that exists, together with the subsequent impact this may have upon possible category strategies. The Dutch windmill framework is regarded as an excellent way of 'guesstimating' the relative amount of power and hence leverage that exists within the buyer-supplier dyadic. It is held as an essential tool within the category management process and can be used to aid category strategy advancement, as well as function as an early indicator of those suppliers where the biggest benefits are likely to occur. This framework suffers from all of the combined limitations of the Kraljic portfolio analysis and supplier preferencing models. For an in-depth critique of procurement segmentation models, readers should consider the writings of Professor Andrew Cox.