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Manufacture industries spent more than 50% of budget to buy raw material from suppliers. Procurement and supply become concern of management. Furthermore, an effective management is needed in order to provide optimal results for the company. However, the company has tendency to be dependent on suppliers, hence, it caused some risks, such as limited control of the company on availability, delivery schedules and the quality of the products produced. Developing good relations is an idea to improve competitiveness to other companies. Supplier segmentation is grouping of some suppliers which are shared the common characteristics. It is important for companies that have many suppliers. Supplier segmentation leads to some segments which each requires a separate strategy for the management. The purpose of this study is to make supplier segmentation based on priority of the capability and willingness variables. Furthermore, the appropriate strategy for each segment will be determined. Supplier capabilities can be evaluated from product quality, price, monitoring technology, innovation and others. On the other hand, willingness can be evaluated from the criteria of communication openness, commitment to always make improvements to products and processes, long-term relationships and others. The Focus Group Discussion method will be used as the method to select the variable. Then the selected variables will be weighted using ANP (Analytical Network Process). This study will be conducted in a pipe company in which suppliers which will be segmented are raw material suppliers.From segmentation, there are 2 suppliers in segment 2, 2 suppliers in segment 3, and 10 suppliers in segment 4. The results of that segmentation are then used by company for supplier development in the different segment.