Benefits consolidating vendors

The procurement and design processes become more efficient when one vendor can supply a wide range of component variants, such as inputs and outputs, different types and sizes of sensor packaging, power supplies, etc. Since all components from the same supplier should function seamlessly, the need for additional testing, re-engineering, and re-certification becomes obsolete.

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Instead, their orders are paired with those of other manufacturers with similar LTL shipping needs (all have orders going to the same retail distribution center) to create TLs.

According to many industry estimates, transportation costs can be reduced by up to one-third by moving from LTL to consolidated TL.

Vendor consolidation savings go beyond just saving money on freight and prices.

Included in these savings are the soft costs of paying fewer bills through accounting, managing fewer vendors for inventory and purchasing, and amalgamating purchase history information through a select few suppliers.

Consolidating office printing and imaging suppliers is a proven strategy that increases buying power, which in turn leads to reduced costs.

Furthermore, vendor consolidation leads to the simplification and minimization of vendor interactions in the areas of procurement process and risk reduction.

What complicates things even further is that organizations don’t employ experts that can make strategic decisions on print services and equipment purchases.

With the right type of print partner, organizations can save thousands of dollars a month, simplify vendor management and procurement processes and increase user satisfaction.

Manufacturers’ relationships with retailers are also improved, since retailers will receive scheduled, consolidated deliveries in line with their continuous fulfillment strategies.

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