Procurement and Supply ManagementThe second challenge is to reduce the supply costs. You noticed that the supply
Question:
Procurement and Supply ManagementThe second challenge is to reduce the supply costs. You noticed that the supply base is very large with 100+ suppliers. You've decided to consolidate the supply base and work with fewer suppliers.
1. How could you proceed to reduce your supplier portfolio?
2. What are the pros and cons of a consolidated supply base?
GoBev's annual procurement spend is ~$150M. The financial effect could be a reality if the company can strategically focus on where it spends its money. Managing DirectorPlantManagementSCMQualityProductionLogistics &TransportationCustomerservicesS&OPMaintenanceInventoryManagementITCSales& Marketing
1. Which tools could you use to identify the vital suppliers to reduce the procurement spend?
2. The remaining suppliers must be evaluated at least once a year.
3. What are your performance evaluation criteria?
4. How would you communicate the results to suppliers?