Question

Problem statement: High dependency on too few suppliers, Very little leverage through the channel. Lacking mechanisms to mange suppliers, to creat supplier stratification. How can data analytics help to alleviate the dependance on few suppliers. Need to create Supplier diversity.

in a 1400 words Answer the following questions
1) How can Data analytics be used to reduce the hight dependence on too few suppliers?

Answer 1

Data analytics can be used to reduce dependency on too few suppliers by providing insights for supplier diversification. It helps identify alternate suppliers, establish relationships and negotiate contracts, and monitor supplier performance.

Step-by-step explanation:

Data analytics can be used to reduce the high dependence on too few suppliers by providing insights and identifying opportunities for supplier diversification. By analyzing historical purchasing patterns, market trends, and supplier performance data, businesses can identify alternate suppliers who can offer competitive pricing, better quality, or more reliable delivery. This information can help businesses establish relationships with new suppliers and negotiate favorable contracts, reducing their dependence on a limited pool of suppliers. Additionally, data analytics can help monitor and manage supplier performance, ensuring that the chosen suppliers meet the desired criteria and contribute positively to the business.