updating of security procedures it - Benefits of consolidating vendors

Those left in your narrower supplier base now become more than just suppliers, they become partners; they have a vested interest in making sure your company succeeds.You can also lower your company’s risk by combining individual components and lower level subassemblies into higher level subassemblies and procuring them from one of your preferred suppliers.

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Focus on suppliers that are always looking for ways to improve and are open to getting creative to think of ways to help you achieve your goals.

In conclusion vendor consolidation can save you and your company time and money while also forming more strategic relationships with a smaller supplier base creating a win-win for both you and your supplier.

Electing to choose from a limited pool of trusted vendors has enabled companies to build stronger and more collaborative relationships that deliver a range of benefits to the organization, including: lower costs in relationship management, lower administration costs, less risk to the business, increased quality and speed in delivery and improved supplier responsiveness.

Awarding higher volumes to a smaller group of suppliers gives you bargaining power that can mean a win-win to you and your chosen suppliers; you get better discounts and they get more business.

Rather than having multiple weekly or bi-weekly vendor meetings to keep everyone on track, think how much time you would save being able to handle issues directly with one source.

Plus, you’ll know you’re getting great service in all areas of your business.

That being said, when starting the rationalization process do not solely focus on the price paid for raw materials and finished goods.

Reducing prices doesn’t help if it means you must hold more inventory or incur higher logistics costs.

Although having a specialized vendor often made sense in the past due to the perception that small to medium businesses could not afford an enterprise-level platform, there are now niche players, like EDGE Business Systems, who have brought together multiple back-office solutions allowing you to consolidate your relationships to one trusted vendor.

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