Second, companies should evaluate and choose between two broad engagement models:

Third, with the proper engagement model, buyers must manage and optimize day-to-day operations:

When a company succeeds at reducing its ADM vendors to a manageable number, they stand to benefit from:

Each of these elements in greater detail and reveals a number of interesting points.

Whatever reasons there may have been for using multiple ADM suppliers in the beginning, high performers are now consolidating their vendor base. Few buyers complain about having too few suppliers, but many struggle with too many suppliers.