A decision support system to dynamically align supplier portfolio management decisions and actions across levels and time horizons

Supplier portfolio management is essential for organizations to achieve their strategic goals. However, there is a lack of decision support systems (DSSs) that can support purchasing managers simultaneously at the strategic, tactical and operational levels, while ensuring consistency of supplier portfolio management decisions and actions across different levels and time horizons. Existing DSSs based on purchasing portfolio models (PPMs) are static and typically address supplier or purchasing category segmentation and analysis at a single point in time. Following a design science paradigm, we specified, implemented, and evaluated NorthStar, a novel DSS for supplier portfolio management designed to align decisions and actions across levels and time horizons through a structured three-step procedure. Ex-ante and ex-post evaluations, conducted in both artificial and naturalistic settings, demonstrate the novelty, relevance, and utility of this artifact. Our study contributes to the theoretical debate at the intersection of supplier portfolio management, PPMs and DSSs, and sourcing strategy literatures. First, it demonstrates how a PPM-based DSS can align supplier portfolio decisions and actions across multiple levels, as well as across time horizons, while remaining consistent with category strategies. Second, it addresses the static nature of traditional PPMs by supporting a shift toward dynamic models that enable continuous monitoring and adaptation. Third, NorthStar operationalizes key theoretical constructs, such as dependence by suppliers, competition, and supplier portfolio complexity, translating them into measurable indicators within a structured decision process, thereby bridging theory and practice. Finally, it provides a flexible, data-driven procedure that enhances the applicability of portfolio approaches in real-world settings.