A supplier portfolio analysis can quickly change the way you see your suppliers. Because the cheapest supplier isn't always the most valuable one.
A low price can turn out expensive if the supplier delivers late, requires high minimum order quantities, ships in split deliveries, creates quality issues, or forces you to hold more stock than necessary.
The impact is rarely felt in just one place. Purchasing sees the price. The warehouse feels the uncertainty. Supply chain deals with the delays. Sales has to explain to customers why delivery isn't holding up. Finance sees capital tied up in extra buffer stock.
That's why a supplier portfolio shouldn't be assessed on purchasing volume and discounts alone. It should be assessed on what suppliers actually cost you, and the value they create across the business.