24 April 2003
Three-quarters of large companies have no idea how much they spend with suppliers, a survey has found.
A further 40 per cent of UK firms do not know how many suppliers they have, according to a Dun & Bradstreet poll of British, French and German purchasing heads at 120 firms with a turnover of $1 billion.
The average firm had 10,533 suppliers, but one in 10 said they didn't spend anything with their preferred suppliers. A further third did not know.
Aileen Lennon, head of supply management solutions at Dun & Bradstreet, was surprised at the lack of spend awareness at the senior level.
"Knowing your supplier and how much they cost you is the first thing to have a handle on if you want to develop procurement. It all comes down to having the information."