The price of many suppliers
3 April 2012
Q: I am interested in the extra costs to my firm of having extra suppliers. If I am currently buying products from, say, seven different suppliers and I go to one that can supply all of the products at the same price, what is the cost advantage from fewe
A: Ray Cobbett, director of PSL, writes: A supply base management strategy is essential to an effective supply chain. Buying organisations are sometimes surprised to discover a large number of suppliers on their database, but detailed analysis usually shows that a relatively small number of suppliers account for a large segment of the spend. On the classic...