Gartner Research

How Well Do Companies Manage the Supplier Long Tail?

Published: 12 May 2008

ID: G00181376

Analyst(s): Wayne McDonnell , Jane Barrett , Mickey North Rizza

Summary

Most companies manage their supply chains and the associated supplier bases using the 80-20 rule. In this article, we focus on the 20, where 80% of suppliers represent 20% of the purchasing volume. Although these suppliers represent lower purchasing volumes, effective management of this supply base is still key to profitable execution in product supply.

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