ABSTRACT
When the impact on business performance is high and the supply market risk is low, there is a definite opportunity for the procurement function to leverage the buyer company position with the supplier. The supplier dependence on the buyer is high, particularly where large volumes are involved under competitive market conditions. The buyer will have a specific list of preferred sources in this area and will be receiving strategic account attention. The strategy is to consolidate the firm's total buy by category and aggregate the buy with selected external partners, such as other suppliers needing the same materials or noncompeting firms using the same materials or services for other purposes.
