Benefits of consolidating suppliers

This approach reduced or eliminated many of the costs traditional carriers incur and allowed the business to run exceptionally efficiently.

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It's Procurement 101: the more volume of business you do with a supplier, the higher discounts you should be eligible for.

With the same volume being supplied by fewer suppliers, you should be pushing for and receiving lower prices.

They put it into action and begin to see great results.

It becomes easier to manage their vendor relationships. This post will discuss what vendor consolidation is and why your Procurement Organization should consider implementing it.

Supply chains suffer from too many suppliers, too many items, and overly-built infrastructures.

This paper looks at the What, Why, How, and Where of consolidating packaging complexity.Because of this, it becomes harder for the procurement organization to be as effective as it could be.On top of that, they aren’t confident that they are getting the best rates for their company.The task appears simple: reduce your organization’s current number of suppliers to extract the most cost-savings and gain increased service level performance.However, the process of consolidating your vendors and instituting a revised model by which to optimize them is complex, time consuming, and at times, very tedious.Supplier consolidation only saves money when at least one of the following three results is realized: Result #1 - Headcount is reduced.

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