Benefits consolidating vendors

30-Dec-2016 23:49

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In today’s competitive markets, that is not enough. If possible, a vendor should partner with its OEM customers, working with them from the initial design process through final delivery.

Here are four advantages of working closely with one supplier: 1.

What are the benefits of reducing a company’s vendor base?

Vendor consolidation is quickly becoming a practice endorsed by several companies who view it as the ideal way to reduce purchase prices, and freight, on incoming parts and materials.

There’s little to no standardization or cost control over their print fleet, often due to the fact that they have been buying print equipment and services from a number of different companies.

For example: The office services team is leasing copiers from a copier manufacturer, and is working with a “copier rep” who is constantly selling the latest and greatest equipment and services that have all the bells and whistles that will of course save them money!

Being more efficient in shipping translates to better optimization of the overall supply chain.

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By reducing the vendor base, companies can increase their purchasing power, leading to the likelihood of securing better pricing and terms.From this, a company can negotiate longer terms, such as net-45 or net-60, or go for further price reductions on prompt payment initiatives and get a 1%-2% discount on net-10 payments.

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