In this three-part series, we’re looking at how vendor consolidation makes it easy for companies to remain innovative, nimble, and vigilant about their productivity and cash flow. Countless companies rely on multiple packaging vendors, resulting in increased supply chain costs, strained vendor relationships, and increasing packaging management costs.
In part one of this three-part series, we discuss the benefits of vendor consolidation.
Vendor consolidation is an often overlooked growth strategy. Companies can enjoy significant financial and operational benefits by thinking beyond the package itself and partnering with a packaging company with the experience, resources, services to streamline and simplify their packaging supply chain.
Part One: What is Vendor Consolidation?
Vendor consolidation is a supply chain management strategy adopted by high growth companies. It’s a process whereby an organization amalgamates its vendors and decides whom to work with based on a thoughtful analysis of their packaging needs, process, and customer requirements.
The right packaging partner simplifies the consolidation process and ensures your critical business needs, customer expectations and regulatory compliance requirements are addressed, while increasing throughput and packaging performance.
The right packaging supplier can also be a conduit for other operational expense items such as safety and janitorial products, thereby consolidating the vendor base even further. This supplemental strategy also provides companies the ability to leverage the more considerable spend dollars on packaging with lower spend dollars on these operating supply categories.
What is The Impact of Vendor Consolidation?
The impact of vendor consolidation can be substantial. A well-executed packaging and operational supply management program will reduce the number of suppliers, eliminate redundant and like items, and result in packaging solutions that best protect, showcase, store, and transport your products.
Through increased economies of scale, consolidation can lower direct costs, improve inventory management, amp overall quality, simplify packaging and operational supply management and even serve to strengthen supply agreements. If you work with a supplier that has the resources to do the job well, you’ll be looking at lower operating costs and improved efficiencies sooner than you might think.
Part two of this series focusses on the benefits of a packaging and operational management program.
To learn how vendor consolidation and packaging management can improve your operational efficiency, save you money and improves your cash flow, please contact your SupplyOne representative or call us directly.