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Project Description : Vendors and their performance are becoming more and more important to companies as they focus more on their core operations and outsource others. In most companies the volume of purchases is 50-90 percent of the turnover while for example the corresponding figure for labour costs is six percent and for overhead expenses three percent. There has also been a tendency towards decreasing the amount of vendors caused by specialization and more complex technology. As dependency on vendors increases, companies have to pay more attention on how they manage their vendor base.
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