Measures the degree to which an organization consolidates its suppliers to streamline procurement processes, reduce costs, and improve efficiency.

What it Measures ?

What portion of suppliers are grouped together to simplify buying.

Relevant StakeHolders 

Category Managers, Strategic Planners

In-depth Use Case / Real-world Example

A manufacturing company that produces heavy machinery tracks the Supplier Consolidation Index to determine how much it has reduced the number of suppliers it works with. For example, by merging procurement from 50 suppliers to just 20 trusted suppliers, the company simplifies its procurement process, improves negotiation power, and reduces management overhead. A higher index indicates greater supplier consolidation and efficiency.