An empirical investigation of the antecedents, processes, and benefits of supply base reduction efforts

One important decision in the design of an organization's supply chain is the number of suppliers that will be utilized for a given product or service. Gaining an understanding of the tools that can be used in creating and managing a supply base should be a top priority of supply management professionals. Supply base reduction is one such tool.; Unfortunately, very little literature deals directly with supply base reduction issues. Additionally, most of the existing supply base reduction articles are conceptual rather than empirical in nature. Consequently, many firms are confused about the drivers, processes, and outcomes of supply base reduction efforts.; This research attempts to fill this void by using empirical research to test many of the conceptual ideas and notions that are presented in the literature. Research questions and propositions were developed after a thorough review of the literature. Case studies were conducted at ten organizations that had recently implemented supply base reduction activities. These organizations represented a variety of industries, products, types of supply base reduction processes, and size of supply base reductions.; After a detailed analysis of the case study data, the researcher discusses the various drivers of supply base reduction efforts, both at an organizational level and at the level of specific products or services. The researcher then discusses the various processes that can be utilized to reduce the supply base for a given product or service and outlines the critical success factors associated with those processes.; Finally, using the case study data and a framework of supply base performance factors, the researcher provides insights into the benefits and drawbacks of supply base reduction efforts. While some elements of agency theory, resource-based view, and institutional theory are applicable to supply base reduction efforts, transaction cost theory seems to be the most applicable theoretical lens through which these efforts should be viewed.; This research provides companies with a better understanding of when, why, and how to utilize supply base reduction efforts in their pursuit of competitive advantage. This information is especially useful in today's competitive environment where supply chains compete against one another.