SBR (Supply Base Reduction)

Supply Base Reduction (SBR) is a business strategy employed in procurement to streamline and optimize a company’s supplier relationships. The primary goal of SBR is to reduce the number of suppliers in an organization’s vendor base, while still ensuring that the quality of goods and services remains consistent. By reducing the number of suppliers, companies can gain better visibility into their costs and negotiate more favorable pricing terms. Moreover, SBR reduces the complexity of managing multiple vendors and lowers administrative costs associated with procurement processes. In summary, SBR enables businesses to become more efficient and cost-effective by focusing on a subset of vendors who can meet their expectations.