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An Introduction to Supply Base Management

This paper provides an overview to the discipline of identifying the appropriate number of suppliers required to support business needs and drivers, referred to as supply base management.

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Reducing an organisation’s supplier base is often a key aim of any procurement professional in a new role. It is always assumed, if not always proven, that aggregation is right and less is more when it comes to the long tail of suppliers most large organisations develop.

But in an increasingly complex world, with an ever growing number of exogenous influences on the organisational agenda, we can no longer assume that the standard approach is always the right approach. Performance optimisation is the new mantra. Getting the right solution for you organisation is more important. Aligning the objectives of the procurement strategy with the goals of your organisation is the correct first step. Having these in tune will lead to developing the right strategy for your business.

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