supplier reduction Content

Supplier Reduction Programmes: Pros and Cons (Part 3) [Plus+]

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 2) [Plus+]

Today we'll look at some of the issues and dangers of implementing supplier reduction under three areas: incorrect baselining, calculation of costs and inappropriate business outcomes. This is relevant to practitioners and solution providers alike, given that supplier reduction has formed part of the business case for many software, consulting or other solution sales over the past two decades.

Supplier Reduction Programmes: Pros and Cons (Part 1) [Plus+]

It is relatively recently that we’ve seen the phenomenon of organisations indulging in supplier reduction programmes, with a stated and overt aim of shrinking the supply base – that is, reducing the number of suppliers providing goods and services to the organisation. But there has been relatively little thought about the underpinning issues around this strategy, and particularly some of the negatives linked to it.