How Important Is Supplier Consolidation?

For all businesses the costs of supplies and the supply chain is under constant scrutiny.

As businesses look to reduce costs and streamline processes, consolidating suppliers is an obvious yet sometimes difficult place to start.

Long standing relationship with individual suppliers can play a role in decision making however when it comes to supply chain costs and efficiencies there is no better time than now to look into the benefits that come from supplier consolidation.

Firstly don’t look at this exercise as damaging supplier relations look on it as a chase to strength and improve supplier relations to a mutually beneficial point.

Keep in mind the overall strategy of supplier consolidation is to reduce prices, reduce processing and administration costs and bring a better understanding of what is important to your business.