Supply base reduction is achieved through increasing both variety and consolidation.

Question

Quizplus · Accepted Answer

Supply base reduction means reducing the number of suppliers to achieve cost savings and other benefits such as better quality and delivery. It is achieved through reducing variety by sourcing from fewer suppliers, not increasing it. Consolidation refers to the process of selecting and working with fewer suppliers who can provide a wider range of products or services, which can help achieve supply base reduction. Therefore, the statement in the question is incorrect.

Supply Base Reduction Is Achieved Through Increasing Both Variety and Consolidation