• A supplier mix shift refers to the strategic realignment or optimization of the supplier base - changing the mix or sourcing locations of suppliers - to better align with organizational goals such as cost reduction, quality improvement, and supply chain resilience. 
• Examples can be mix shift from multiple small-tier suppliers to a few strategic high-quality global suppliers and getting a better weighted avg price or adding local vendors alongside existing international suppliers to reduce costs.

N/A

• Does this count as Productivity?

• Supplier mix shift counts as productivity. It enables the organization to reduce the overall cost and achieve better value with the same inputs, which is the core definition of productivity improvement. 

Governance

• It should be a conscious effort to reduce per unit cost. 
• It shouldn't be a one off and should meet the YoY wtd avg rate improvement criteria. 
• Local Finance should ensure that total cost of ownership principle is ensured. 
• Ensuring the correct baseline for prior year is critical. 
• Include incremental costs such as transportation, implementation costs. Consider impact on efficiency, training/development/currency fluctuations and regulatory concerns due to mix shift.