The usefulness of the purchasing portfolio approach in a variety of industrial situations can be seen in the diverse experiences of four large companies. Not long ago a welding materials producer with plants and sales operations all over Europe found its profits squeezed by increased competition and slackening market growth. Searching for ways to improve the picture, the company found that supplies were critical to the production of its welding wires and electrodes. Together, just five out of the 470 different items it purchased accounted for more than 60% of the company’s total purchasing volume of $135 million. Taking into account demand growth, quality standards, and logistics, the company then analyzed the European market for these five items in light of its own plant-by-plant requirements. A third step determined the company’s position against a wide range of individual suppliers and assessed the risk of increasing the share sourced from each one.