We’ve all had one of those “any-port-in-a-storm” moments when any supplier would do, as long as they’d agree to deliver what was needed in a hurry.
Sometimes the quick fix is necessary, but most managers who source products and services would probably agree that building a small roster of dependable suppliers you can count on for consistency, flexibility and fairness pays big dividends — as long as you don’t lock yourself into a vendor who has become complacent and takes your business for granted.
That’s why it makes sense to periodically look for ways to consolidate your supplier list. By taking a strategic approach to supplier consolidation, you are likely to see:
- Reduced Costs. The cost of managing procurement, taxes, duties, packing, shipping and handling charges with a large base of suppliers means more vetting, billing, and transaction fees. A short list of dedicated suppliers is more likely to remain competitive and find opportunities to streamline operations to your mutual benefit.
- Improve Quality. With a smaller dedicated supplier team, you can build a inter-company culture that shares your expectations for quality, safety, cost reduction and continuous process improvement. That kind of close relationship is an investment that pays off and can best be achieved with a core base of supply partners.
- Client Service and Support. When your suppliers recognize your allegiance and rely on an increased volume of business from you, they will be more strategic in their approach and focused on your requirements for providing superior value and service.
- Common Goals and Trust. A preferred supplier will become a trusted partner in your business, look for ways to help you find solutions to benefit your operations and enhance the service you are able to offer your clients.
Now the question becomes: How do I choose the right supply partners? It’s going to take some work.
- Find suppliers who offer the product and service menu with expertise that fits your needs.
- Do your own due diligence: Do they have a long-term and proven record of excellence?
- Look for flexibility and a willingness to accommodate your special interests.
- Companies willing to be transparent about costs and who will encourage interaction and share problems and solutions are high on our preferred supplier list.
- Review the service, delivery, logistics and warehousing capabilities of a potential supply partner.
- Ask yourself: Will I be willing and even enjoy doing business with this supplier in good and bad times?
At ICAT Logistics Detroit, we rely on a strong and dedicated supplier network, but we always maintain flexibility to ensure fair and competitive pricing, unparalleled and timely service and open and honest two-way communication. We believe we should expect the best from our suppliers and we should offer the best to our customers, too.
We’re your custom shipping resource. Solutions to our customers’ most challenging issues are derived from decades of success in global logistics. https://www.icatlogisticsdtw.com/