In EVERY company, 20% or less of all suppliers are responsible for 80% or more of the overall spend. That is what you want to focus on.
But does this mean you should neglect the rest? Of course not, because your tail is worth gold!
The key to success? Minimum effort, maximum return. Here’s what you need to avoid:
- wasting time searching for an appropriate supplier for your spot buys
- having multiple suppliers for the same commodity
- continuously adding suppliers to your tail
- major invoicing errors
- heavy approval flows and sourcing paths for low-value spend
- not knowing who buys what and where…