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Increasing a supplier base can enhance competition among suppliers, potentially leading to lower prices and improved quality of goods and services. It also reduces dependency on a single supplier, mitigating risks associated with supply chain disruptions. Additionally, a diverse supplier base can foster innovation through access to new ideas and technologies. However, managing a larger number of suppliers may increase complexity and administrative burdens.

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What is supplier base?

A supplier base refers to the group of suppliers that a company relies on to provide goods and services necessary for its operations. This base can include various types of suppliers, such as manufacturers, distributors, and service providers, and is crucial for ensuring a steady supply chain. Effective management of the supplier base can enhance efficiency, reduce costs, and improve product quality. Companies often evaluate their supplier base to optimize performance and foster strong relationships.


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