Once a firm fully rationalizes and optimizes its supply base, improvement will occur primarily by developing the capabilities of existing suppliers rather than by switching suppliers on a large scale.

Question

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Once a firm has fully rationalized and optimized its supply base, the primary focus should shift to developing the capabilities of existing suppliers rather than switching to new suppliers on a large scale. This helps to build stronger supplier relationships and encourages innovation and continuous improvement within the supply chain.

Once a Firm Fully Rationalizes and Optimizes Its Supply Base