Procurement organisations often have multiple suppliers for the same materials to ensure that in the event of one supplier not being to meet the supply requirements, another supplier is already in the pipeline.
While having multiple suppliers is a definite advantage, it is important to narrow the list down to the suppliers who are the top performers—strategic procurement helps to achieve this.
With the right strategy, a company’s procurement function is in a position that can identify its best-performing suppliers and increase collaboration with them while reducing or eliminating contracts with suppliers that are not in line with the high standards of the company.
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