Supply base reduction [SBR] is the process of deliberately reducing the number of active suppliers in the supply base. The motivation is to consolidate the organisation’s spend to fewer suppliers and to leverage better value from those relationships. Many organisations have several thousand suppliers and the spend with the majority of the suppliers will be relatively low. The focus of SBR may begin with suppliers of low-value and low-risk categories and may involve the use of preferred supplier arrangements, distributors or tiering of suppliers.
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