• Kurt Parker 27/12/2019 08:21AM

    In Category Management

    What is the ratio of number of suppliers to spend in an organisation?

    I am trying to establish what the standard number of suppliers per category is based on an organisation's indirect spend. Has a standard been established by any reputable body?

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  • Answers (4)

  • Helen Mackenzie

    29/12/2019 10:47AM

    Hi Kurt
    I’ll send a couple of messages to people who I think might know.

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  • Ashley Collins

    17/01/2020 08:04PM

    Hi Kurt
    Roughly, an organisation will have an 80:20 ratio of suppliers to spend. That is, 80% of the organisation's spend will reside with 20% of the suppliers. The key is in the management of the 80% of suppliers that represent your tail end spend. There is no magic number of suppliers for an organisation; the optimal number of suppliers should include those that possess the capabilities to support your organisation’s goods & services requirements. A robust spend analytics exercise will reveal the strengths / weaknesses / opportunities for consolidation & attrition as you develop out the taxonomy.

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  • Edward Murphy

    13/01/2020 09:16PM

    Hello Kurt to be honest it don't matter you alway need a redundant supplier or two and depends on the product make up and frequency of orders and value of order you could spend months and months on this start with biggest spend of similar products but move to solidworks digital order platform for drawings to ome ord parts liked to pard number can go in to detail if you require but quite busy started my own busiuness www.corporatespec.com but join me on linked in https://www.linkedin.com/in/edward-murphy-1b2397a9/ will be setting up procurment business soon. Edward Murphy Director 07743621221

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  • Kurt Parker

    29/12/2019 04:08PM

    Thank you so much Helen...

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