This document summarizes a case study about UTC, a major diversified technology group, and its supplier categorization strategy. UTC relies on suppliers for 75% of its needs and its Indian supplier base is growing rapidly. UTC faces the problem of how to categorize vendors to provide varying levels of support. The solution is a two-tier vendor categorization approach. Tier 1 focuses on hygiene/firmographic segmentation based on location, technical capability, production capacity, certifications, and ethical standards. Tier 2 focuses on behavioral segmentation based on collaboration, innovation, sustainability efforts, and financial stability to identify partners for strategic initiatives. This two-tier approach allows UTC to tailor support programs for suppliers.