CAPITAL SUPPLY MANAGEMENT -
My Blog

February 2012

Untapped Value

I was in a meeting the other day with several peers from a large corporation and one of the topics discussed was tapping in to smaller suppliers.  Past research data has shown that large companies stick with large suppliers and small companies utilize smaller suppliers.
 
As we talked, we identified a number of reasons why this happens, the most prevalent of which is the obvious - size compatibility.  It seems that like-sized company counterparts feel more comfortable (and productive) in day-to-day business relationships because of sophistication synchronization, similar financial structure and finally, policy/procedure guideline issues.