Learning-curve analysis is a key reason why many buyers consolidate purchase volumes with fewer suppliers.

Question

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Learning-curve analysis refers to the idea that a supplier will become more efficient and effective at producing and delivering goods or services as they gain more experience working with a particular customer. By consolidating purchase volumes with fewer suppliers, a buyer can help their suppliers reach this point more quickly, which can lead to cost savings, quality improvements, and other benefits.

Learning-Curve Analysis Is a Key Reason Why Many Buyers Consolidate