Question

What do you call the process of determining how many and which suppliers you should buy from as well as defining the type of relationship you should build with each supplier?

a. supplier reconciliation
b. cost management theory
c. customer based realization
d. supply-base rationalization
e. none of the above

Answer 1

Supply-base rationalization is the process of analyzing and streamlining the supplier base to ensure efficient and effective procurement that aligns with a company's strategic goals.

Step-by-step explanation:

The process of determining how many and which suppliers to buy from, as well as defining the type of relationship to build with each supplier, is known as supply-base rationalization. This involves assessing the supplier landscape to develop a streamlined supply base that can provide the needed goods and services efficiently and effectively. It's an important activity within supply chain management and procurement to ensure that the company has the right mix of suppliers that align with its strategic goals and operational requirements.

The process of determining how many and which suppliers to buy from, as well as defining the type of relationship to build with each supplier, is known as supply-base rationalization. This process involves evaluating suppliers based on factors such as quality, cost, reliability, and strategic alignment. By rationalizing the supply base, companies can streamline their sourcing processes and develop strong relationships with a select group of suppliers.