How To Save Big On Office Supply Expenses Through Supplier Consolidation
Supplier consolidation is the process of reducing suppliers within a specific supply market and focusing on the most successful suppliers within the same supply market. Aimed to reduce supply chain costs and improve efficiency, consolidating suppliers is a strategy that can be implemented by any industry. The global business environment is an inherently complex environment. Understanding the types and costs of such complexity is important in order to identify and eliminate the causes of waste, expense and risk. Reduce Purchasing Costs As the number of suppliers is reduced, buying power increases. Strategic sourcing processes can be employed to introduce competition and lower purchase prices. Price and other associated landed costs (i.e., shipping, handling, taxes and duties/ fees) are together referred to as purchased costs. As the number of suppliers rises, the annual incremental savings associated with these purchased costs decreases, both for indirect spending overall, but a