3 Ways Consolidating Supply Chain Can Enhance Your Purchasing Strategy

Supply chain management is one of the most important aspects of a business, in order to acquire the goods and services required to run smoothly. Having a solid procurement strategy in place can help to facilitate this. Your strategy should be streamlined, efficient, and cost-effective.

Finding the right suppliers, establishing strong relationships, and continuing to analyse the effectiveness of your supply chain can be a daunting task. We explore three benefits of consolidating your supply chain, and how doing this can improve your processes and cut costs.

1. Improved Time Management

One of the major benefits of consolidation is that you only have to deal with a single point of contact, rather than juggling multiple suppliers. This makes it easier to manage your supplier relationship and evaluate their performance. This can add real value to your business.

This single contact will take responsibility for ensuring contractual criteria is met, overseeing quality control, and meeting your sustainability goals. With one point of contact, you only need to manage and nurture one relationship. You reduce the number of on-site visits, phone calls, emails, invoices, and other general admin tasks. This saves your time in the process!

Your procurement strategy can automatically become more efficient through having a more strategic partner in place.

The Covid-19 pandemic wreaked havoc on supply chains, making delivery times longer than ever. With many travel restrictions in place, this created a huge strain on delivery and turn around times. If you have struggled meeting deadlines due to supply issues, working with a vetted partner means they will have contingency plans in place for such events. This means your time is not spent on resolving these issues.


2. Increased Transparency & Sustainability

The future of best business practice lies with sustainability. Meeting your own organisations’ sustainability goals can be made difficult if your suppliers’ goals do not align. Consumers demand ethical practice as a matter of principle. According to a recent consumer survey, released by ING Capital LLC, based on responses from more than 15,000 consumers in 11 countries across Europe, North America and the Asia-Pacific region 61% of consumers say they would be less willing to buy a company’s product if they discovered it was performing poorly on environmental practices. Therefore, it’s vital to research who you’re working with.

It can sometimes be difficult to ensure your suppliers are implementing sustainable, environmentally friendly procedures. This is made even harder when working with a vast number of companies. By consolidating an area of your supply chain, you’ll have full transparency about all of the suppliers that your company works with. A supplier that holds ISO14001 accreditation demonstrates their commitment to continuous improvement and reducing the environmental impact in delivering their products and services.


3. Benefitting from Advances in Technology

One of the key benefits of technology within procurement is facilitating more data-driven decision-making. By replacing manual processes with digital ones, you can increase supply chain visibility. Therefore, it’s important to find a company that is ahead of the competition; a company who utilises the latest technology to improve quality and mitigate risks. According to a recent report by Globality, Procurement at the Inflection Point, “Digitisation is still new, but 43 percent of respondents reported having just started their digitization journey within the past year. Astutely, several respondents also mentioned that digitisation is a never-ending journey. Companies looking to stay competitive are always seeking new and different ways to digitise, with procurement being one of the biggest opportunities to affect the bottom line”.

As well as sustainability and transparency, you’ll have a clear picture of the quality and expertise delivered by your preferred company.

SF Taylor can help with all of the processes mentioned above. We have many examples of how we have helped our clients to streamline their procurement strategy to improve performance and productivity, as well as alleviate risks associated with having multiple suppliers. If you would like to learn more about consolidating your supply chain, contact us at sales@sftaylor.com and ask for details on our free print audit.