Monday Morning Monologue: What is the value in right sizing your supply base?
Good Morning! Whether you’re a large OEM or a brand new startup, there’s high value in right sizing your commodity spend. The definition of right sizing is a bit of a moving target, but here’s an attempt to define it: A right sized commodity is having 2-4 suppliers where your spend represents between 10-30% of their sales. This provides good buying power, competitive balance, and very good service since you represent a healthy portion of their sales. A meaningful relationsh