Highly Fragmented Most product categories are highly fragmented,with numerous suppliers each offering different level of quality, service and pricing options Buyers incur significant cost in the actual purchase process A buyer must invest internal resources to manage the process of collecting,analyzing and acting upon all the information in the market In addition to purchase price companies spend over 10%in additional procurement costs On the suppliers side,there are significant costs in using the manufacturing reps These commissions range from 4%to 7%of purchase priceHighly Fragmented „ Most product categories are highly fragmented, with numerous suppliers each offering different level of quality, service and pricing options „ Buyers incur significant cost in the actual purchase process „ A buyer must invest internal resources to manage the process of collecting, analyzing and acting upon all the information in the market „ In addition to purchase price companies spend over 10% in additional procurement costs „ On the suppliers side, there are significant costs in using the manufacturing reps „ These commissions range from 4% to 7% of purchase price