Supplier normalization can also be referred to as standardization. Normalization is giving your existing suppliers a common name or grouping so that you can see how much you are truly spending with them or selling to them.
Sounds silly though, right?
Surely companies must know how much they are spending, selling or using with their suppliers already? You might think that, but there are a number of reasons that you might find multiple versions of the same supplier in a database.