In procurement terms leverage means the use of economies of scale to secure improved value. For example, aggregation of demand may give the buyer more leverage, as will reducing the variety of solutions to the same need, or reducing the number of contracted suppliers. The economic logic is that the supplier’s fixed costs can be spread over a greater volume and hence result in a lower price. In portfolio analysis, leverage categories are low in value and low in risk and the implied procurement strategy is to aggregate volume and secure competition to seek better terms. See also Economies of Scale and Portfolio Analysis.