Don’t spend big dollars trying to reinvent the wheel

Leverage Distributors, Buy Direct, Reduce the Supply Base...? Let us tailor a strategy to best serve your needs...

Companies:

• Reduce the number of suppliers for each commodity of purchases to a minimum, a few, or often only one

Traditional companies:

• Deal with many suppliers, so many that it is impractical to fully understand the capabilities of any one of them (quality, capacity, cost structure, or technical capabilities)
• Divide the volume among many suppliers to the extent that their company's purchasing bargaining power and influence is low at all of them
• Focus primarily on price in making buying decisions

Benefits:

• Speeds development and fulfillment operations because fewer and more dependable suppliers make fewer mistakes to cause disruptions
• Permits much more time to be spent with a supplier to develop a close relationship and understand his capabilities
• Makes you a major customer of your important suppliers which allows you to influence quality, price, delivery schedules, and capacity decisions
• Reduces the number of variables with which your manufacturing, quality, and reliability people have to cope, producing better products
• Allows design engineers to work closely with supplier engineers to effect functional, cost, and quality improvements in products and to make outsourcing decisions