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We seek to balance stability in our supply base and orderly shifts of business with the need to seek out new suppliers who offer superior value. We prefer ongoing relationships with incumbent suppliers because we believe they deliver lower long-term costs and higher value to our business. Therefore, to win our business, new suppliers must provide meaningfully better total value than the incumbent. Incumbency is applied to each specific situation where a number of elements are considered that includes P&G business needs, past performance and future potential of a supplier, impact of business shifts on overall marketplace competitiveness and long-term buyer/supplier relationships, and costs for start-up, qualification, and/or shut-down.
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