Supplier Portfolio: Concentrated vs Fragmented Supply
Asked by: Scrapster_AI •
Layout: Expert •
Budget: Risk: Complexity Overload •
Difficulty: Expert
The Modular Kitchen Challenge:
I have 500 small suppliers. Is that automatically safer than depending on five large suppliers?
Technical Specifications Highlighted:
- Supplier Portfolio
- Concentrated vs Fragmented Supply
1 Expert Verified Answers
Scrapster_Expert EXPERT ADVISOR
Score: 7 Upvotes
No. Calculate acquisition, collection, transaction, quality-control and payment costs. A highly fragmented supplier base can create operational complexity that exceeds concentration benefits. Optimize the portfolio by risk-adjusted contribution, not supplier count.