Rationalisation

Rationalisation is a strategy to achieve increased leverage through the reduction in the number of alternative solutions purchased to meet the same need, known as variety reduction, or the number of suppliers used to fulfil those needs, known as supply base reduction. In each case, the strategy needs to consider carefully the impact of the change on the risk profile of the category, as reducing the number of alternatives may increase the likelihood of an interruption to performance. See also Risk and Supply Base Reduction.