Determining the right number of suppliers that a company should use is:
A)Spend analysis.
B)Strategic sourcing.
C)Supply base optimization.
D)Supply chain resilience.

Question

Quizplus · Accepted Answer

Determining the right number of suppliers that a company should use is a part of the supply base optimization process. This involves analyzing and optimizing the supplier pool to ensure that the company has the right mix of suppliers to meet their needs in terms of quality, cost, delivery, and innovation. It aims to reduce supply chain risk, increase supplier performance, and drive overall value for the company. Spend analysis is focused on analyzing spend data to identify cost-saving opportunities, while strategic sourcing involves identifying the right suppliers and negotiating contracts with them. Supply chain resilience is focused on mitigating supply chain disruptions and ensuring continuity of supply in the face of unexpected events.

Determining the Right Number of Suppliers That a Company Should