Supplier segmentation

Jun 1, 2023

Ecopetrol segments its suppliers into different quadrants in order to generate a different treatment and add greater value in the supply chain management, through the strengthening of the relationship with suppliers, value generation, cost optimization, identification and definition of new joint strategies and opportunities.

Based on international standards, in 2022 the supplier segmentation process was strengthened, by including 2 new criteria, thus having 5 aspects for classification:



The 2 new criteria represent a high strengthening of supplier segmentation since they consider the following elements:


PERFORMANCE ASSESSMENT: The performance assessment calculus corresponds to the sum of each defined criterion: Operational Efficiency, HSE, Administrative Aspects, Environment Management and Accomplishment of deadlines, which its impact is determined by the contract type (goods or services).

Based on the result obtained, the supplier performance will be classified in 1 of the following levels:

Exceptional performance: ≥ 98%

Satisfactory performance: 85% - 98%

Low performance: < 85%




STRATEGIC POTENTIAL: To identify the suppliers´ strategic potential the following indicators are considered:

  • LOCAL IMPACT: Measures the supplier's impact on local employment and local procurement of goods and services.

  • MARKET CONTEXT: Measures the supplier's impact on Ecopetrol's annual performance, as well as Ecopetrol’ s participation the operating income of each supplier.

  • GROWTH POTENTIAL: Measures the percentage of assets that are being financed with supplier´s own capital and the supplier total debt.

  • MARKET COMPETITIVENESS: Measures the supplier's concentration level in the goods and services categories contracted.

  • INNOVATION: Measures the supplier's innovation level.


Aiming to count with a comprehensive supplier screening, the segmentation is complemented with a qualitative review, which seeks to measure the Ecopetrol’ s internal perception about supplier´s value generation, strategic potential, and impact on operations. This information does not replace the quantitative data but serves as an important segmentation complement.

With this new methodology, Ecopetrol classifies its critical suppliers, which represent 80% of spent, into 3 Hubs:

Contributes to the development of competitive advantages, obtaining a higher degree of innovation and risks mitigation.

Results 2022:

  • 120 suppliers
  • 72% spent

Looks to manage a commitment increasement and improvement of their performance.


Results 2022:

  • 78 suppliers
  • 22% spent

Displays a lower performance than other suppliers and require greater monitoring and risk management measures.

Results 2022:

  • 44 suppliers
  • 6% spent


Non-tier 1 Supplier´s Classification:

The supply chain process allows a comprehensive segmentation in accordance with strategy, category of goods or services and the type of supplier. This means that in the identification of the procurement needs, the process takes into account those factors and determines the critical activities that must be directly contracted and performed by its tier 1 suppliers and the non-critical activities that could be subcontracted or provided by third parties (non-tier 1 suppliers).

Ecopetrol classifies its non-tier 1 suppliers, as follows:

Natural or legal entity who carries out activities on behalf of Ecopetrol´ s suppliers that are an essential part of the object and scope of the contract executed for Ecopetrol. All the subcontracts must be authorized and approved by Ecopetrol.

Management 2022:

Ecopetrol’ s suppliers had 101 subcontractors, mainly for the development of specialized studies and civil works.

Natural or legal entity that performs activities on behalf of Ecopetrol’ s suppliers that are not an essential part of the scope and object of the contract executed for Ecopetrol.

Management 2022:

Ecopetrol’ s suppliers had 28.382 providers mainly for transport and food services.


Ecopetrol has internal regulations for the non-tier 1 suppliers´ management that includes subcontracting guidelines, relationship with those suppliers and other commercial and labor aspects.

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