About   |   Newsletter
Demand & Supply Chain Management Evolution

Supply Chain Glossary

Glossary  >  P  >  Pareto Principle  


Pareto Principle

Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


The Pareto Principle has expression in many fields of procurement.  One is that a small number of categories represent the majority of the total spend and a small number of suppliers cause a disproportionate number of the problems.  The principle has also evolved into the ’80:20 rule’, which underpins many situations in economics and management where scarce effort needs to be focused to best effect.  For example, if 20% of all purchase transactions account for 80% or more of the total spend, focusing on these acquisitions, so that managerial effort is used to best effect can optimise the return on procurement effort.  Pareto analysis is usually seen as one dimensional, as it does not consider the business impact of the categories, or the market complexity.  See also Portfolio Analysis.



Job Opportunities
Supply Chain Manager
     Cambridge, Cambridgeshire  -  PERM  -  1st Executive

Transport Manager £35000
     East Midlands  -  PERM  -  Bis Henderson

Export and Logistics Coordinator
     Wimbledon  -  PERM  -  Page Personnel

Buyer - Peterborough - £27,000 to £30,000
     Peterborough  -  PERM  -  Supply Chain People

Production Planner - FMCG Manufacturer - Trafford Park
     Trafford Park  -  PERM  -  Michael Page

Interim Source to Pay Sustain Specialist - £450 per day
     London, England  -  TEMP  -  1st Executive

Maintenance Technician
     Derby  -  PERM  -  Jonathan Lee Recruitment

Material Manager
     Birmingham  -  PERM  -  Cast UK

Buyer - CIPS Support
     Birmingham  -  PERM  -  Cast UK

     Birmingham  -  PERM  -  Procurement People

Category Manager - Non IT
     London  -  PERM  -  Morgan McKinley

Material Planner
     Banbury  -  PERM  -  Jonathan Lee Recruitment

Interim Capacity Planning Consultant £300-400 per day
     Berkshire, England  -  PERM  -  1st Executive

Warehouse Project Manager – 12 month FTC
     East Midlands  -  PERM  -  Bis Henderson

Supply Chain Fulfilment Planner - Global Leading FMCG Business - Mole Valley
     Kingston upon Thames  -  TEMP  -  Michael Page

           Circular Economy     Industry 4.0     Blockchain 

     Internet of Things     Omni Channel 

Join us on

News & Trends

Last update 8 Jan 2020
UK manufacturing output contracts at fastest pace in almost seven-and-a-half years
   Source: Markit /CIPS UK Manufacturing PMI ®  -  IHS Markit
United Kingdom 

Energy & Utilities

With increasing regulation & customer service expectations, utilities companies are redirecting their focus to improve end-to-end supply chain performance. As part of our drive to improve asset utilisation and up-time, Unipart Logistics has been at the forefront facilitating companies improved bus...

Electrification and the “Death of Diesel” sees heavy spending on new mobility, but slowing sales and shrinking profits leads to bumpy road ahead, says AlixPartners study

The report highlights some of the challenges the industry faces going forwards: Automakers could incur a $60-billion pre-tax profit hit through 2023 86% of Chinese consumers and 59% of UK consumers polled say internal...

Supplier and Contract Management
Introduction to Purchasing and Procurement
Purchasing Strategy and Leadership
Negotiating with Suppliers
Supply Chain Strategy and Leadership

Local & Regional Agenda

Lituanica’s appetite for success leads to Slimstock partnership

The UK’s largest specialist retail chain of Lithuanian and Eastern European cuisine has partnered with inventory management experts, Slimstock, to increase availability across its network of stores and wholesale...

What Do We Really Know About What We Know? The Nature of Relationship Governance in the Reverse Supply Chain

Inter-organizational relationships have received significant attention in the marketing channels literature (Anderson and Weitz, 1992; Mohr and Spekman, 1994; Morgan and Hunt, 1994). More recently, the supply chain liter...

International Agenda