The management of the supplier portfolio is a particularly strategic mission for the procurement function. When it comes to head spend and mid-tail spend, which account for 95% of the cumulative procurement budget, the supplier portfolio is fully under control. These are carefully sourced, regularly audited, and their overall performance is closely monitored by the buyers. This is not always the case though for long tail spend*, which often goes under the radar for many reasons.
Long tail spend : rationalise your supplier portfolio