2022 SAP Paper On CPO Challenges Takes Us Back To A 2009 Post On Vendor Rationalization

Posted on June 7, 2022


How does a vendor rationalization strategy still make sense in a post-pandemic world? We asked the same question in 2009!

Late last month, SAP released a paper titled the “Top 10 Issues Facing Procurement Leaders in 2022 and How to Solve Them.” Here is the link to download: https://lnkd.in/gVGcRqq7

It is a good paper in which the stats on page 5 reminded me of my post in 2009 about the The Kraft Heinz Company plan to rationalize its supply base. Although collectively the data paints a sobering picture, one stat in particular stood out – 53% of executives say that when it comes to direct spend, their organisation has one or more products that it purchases from only one supplier.

This revelation along with the other data makes me wonder why vendor rationalization was ever a good strategy.

What do you think? 

Posted in: White Papers