Supplier reduction and risk management
Company B, an anonymous US manufacturer, measured its supply base by the total number of suppliers per total number of dollars or as average dollars spent per supplier, and consequently set a goal to reduce suppliers. Risks associated with the reduction were identified and a supply base rationalization plan for each of its commodities was developed. Current suppliers were divided into three categories: red - scheduled for elimination in the near future; yellow - scheduled for elimination from th...
BPIR Categories2.5.4 Identify and manage risks
5.2.1 Select suppliers/outsourced contractors
13.1 Develop and manage supplier/customer partnerships