strategy+business is published by PwC Strategy& LLC.
or, sign in with:
strategy and business
(originally published by Booz & Company)


Suppliers Benefit from Having Just a Few Big Customers

Because efficiencies from collaboration and coordination along the supply chain don’t necessarily show up in conventional measures, managers and companies that focus too narrowly on gross margins may miss crucial financial implications about their relationships with major customers.

Bottom Line:
Suppliers with just a few major customers benefit from having a concentrated business base. The efficiencies they develop from collaborating across a supply chain more than counteract any loss in bargaining power with large customers. These dividends are reflected in a better bottom line and stock market performance.

Follow Us 
Facebook Twitter LinkedIn Google Plus YouTube RSS strategy+business Digital and Mobile products App Store


Sign up to receive s+b newsletters and get a FREE Strategy eBook

You will initially receive up to two newsletters/week. You can unsubscribe from any newsletter by using the link found in each newsletter.