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ABSTRACT: This study investigated the importance of Supplier Segmentation to the manufacturing sector of Ghana; using selected manufacturing companies the in Eastern and KEYWORDS: Supplier Relationship Management, Supplier Segmentation INTRODUCTION In many manufacturing industries, competitive advantage is rapidly shifting to the management of suppliers, which can account for as much as 60 to 80 percent of manufacturing costs. Suppliers also exert a strong influence on throughput time and work-inprocess inventory, and play an often critical role in new product development. Companies that integrate their supplier base effectively with their internal engineering, manufacturing, and purchasing operations benefit from reduced costs, shorter lead times, lower development risks, and compressed development cycles. Many businesses have recognized the strategic importance of optimizing their supply management processes. Companies as diverse as Toyota, Honda, Ford, Harley-Davidson, Detroit Diesel, Black & Decker, Yamazaki Mazak, Motorola, Bose, and Xerox are developing effective new ways for their internal functions to work together with suppliers in optimizing product design, development, manufacture, and distribution. Supplier segmentation which is a process of categorizing suppliers in the order of importance to buyers has become a club which leading automobile companies hold a pass