A large supply base means the duplication of a wide range of supply management activities, adding to acquisition cost without a corresponding increase in value added to the customer.

Question

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A larger supply base can lead to duplicated activities such as supplier qualification, contract negotiation, and performance monitoring. This can increase acquisition costs without necessarily adding value to the customer. Consolidating the supply base can help streamline these activities and reduce costs.

A Large Supply Base Means the Duplication of a Wide