An excessively large supply base usually develops because of a lack of procurement spend visibility, control, or influence. Budget holders decide where and how to allocate their money, leading to fragmented and uncoordinated spend. Hence getting such situations under better management will bring a number of benefits, and an effective procurement programme, probably category management based, will be needed to address matters. And there’s no doubt that even today, most large organisations, in most categories, will find that the result of a well-planned and executed sourcing programme is fewer suppliers in that particular spend area.
Supplier Reduction Programmes: Pros and Cons (Part 3) [Plus+]
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