Today’s manufacturing industry are strained to find cost-saving initiatives as the cost of materials and labor continue to increase, the harder it is to get suppliers to reduce costs. This is where S&E can help your business. This is a proven strategy for manufacturers to reduces purchase prices, reduces process costs, reduces risk and improves supplier relationships.
S&E can further help you:
As you reduce your supplier base, purchasing power increases. By allocating more resources to fewer suppliers, you can receive better prices for a product. Overall freight, handling and other related shipping fees will reduce in cost as well.
With fewer suppliers to handle, the costs involved in setting up a supplier in internal systems, completing transactions and managing the relationship significantly decreases.
Relying on fewer suppliers will significantly reduce your risk. With fewer suppliers to manage, your company can better focus on securing all applicable risks throughout the supply chain. Your company can spend more time improving compliance and other legal policies.
When there are fewer suppliers to manage, the easier it is to focus on building relationships with core suppliers. By consolidating your supplier base, the core suppliers will get a larger piece of your market share. This larger market share for your core suppliers will equal lower prices for your company. Fewer suppliers also allows for more time focusing on improving the quality, efficiency, and overall performance of your core suppliers.