Supply Base Management (SBM)

Supply Base Management (SBM) is a systemic, dynamic approach for strategically managing the whole supply base (current suppliers, minor suppliers, and potential suppliers), the scouting of new suppliers, and the transition of suppliers between groups. There are four major elements to SBM: management of major suppliers, management of minor suppliers, scouting and vetting potential suppliers, and the onboarding and integration of new suppliers into a company's supply chain. Supply base management is a long-term supply chain risk mitigation strategy which not only oversees the performance of current suppliers, but ensures that backup ad scouted suppliers can be integrated as seamlessly as possible. SBM also involves the ongoing evaluation of potential supplier replacements. Akin to sports recruiting, supplier scouting is a continuous process aimed at providing a robust, compliant supplier pool.

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