Tags: Supply Chain
Supplier Management and Consolidation
Given the nature of global consumerism, businesses often use multiple suppliers to meet the growing needs of their customers. However, using multiple suppliers is often difficult to manage effectively, especially when suppliers are located across the globe. And, when customer demands are not met due to a poorly managed supply chain, businesses stand to lose a lot.
Group O offers supplier consolidation and supplier management services to help streamline your operations and reduce the number of suppliers your team has to manage. Let’s face it, resources are stretched. By outsourcing the management of suppliers to Group O, your procurement team can replace a large number of unique suppliers in your system with one single supplier - Group O. This saves you time and money and allows your team to focus on other company priorities.
Typically, 80 percent of suppliers account for only 20 percent of spend. Since most companies only have the time and resources to manage high-spend, core suppliers, they miss out on opportunities for significant savings within the low spend group of suppliers. These companies look to Group O to manage those for them.
An added benefit of supplier consolidation is it controls maverick spending. Maverick spending occurs when purchases are made outside of a negotiated contract or without going through the proper procurement process. When a department or individual purchases materials or services independently, it generally results in a higher purchase price and multiple “like” suppliers in your system. This probably happens more than you think.
Group O leverages thousands of suppliers to find you the best value and consolidate purchasing power.
Low-cost sourcing from 7,000+ suppliers
Spend aggregation to maximize discounts
Reduce supply chain risk
To optimize the total number of suppliers your business needs, our experts identify, analyze, evaluate, and categorize each one.
Your suppliers are analyzed and evaluated on a variety of different performance qualifiers. This is done in order to determine how many suppliers you need to get the job done more efficiently.
Group O’s supplier consolidation analysis provides numerous benefits to your business, including:
Reduced process cost
Easier supplier management
Better supplier relationships
Lower administrative cost
Increased supplier visibility
Increased insight into spend categories
Group O can also negotiate with your suppliers for pricing on goods, services, and freight. Instead of paying more for suppliers that you may not even need, you can rely on Group O’s supplier consolidation techniques to save you and your customers money and time.
Supplier Performance Management
In addition to consolidating your suppliers, Group O’s experts continually monitor your supplier’s performance. Looking at key metrics, our staff measures, analyzes, and manages the quality of your suppliers as well as their performance. This is done to improve supplier compliance, reduce costs, alleviate risks, and drive continuous improvement.
Supplier performance evaluations look at direct and indirect costs, including:
Cost of quality
Ultimately, our goal is to ensure your suppliers are meeting your business objectives and then some.
Sourcing and Procurement
During the process of consolidating your suppliers and managing their performances for optimization, our experts learn a lot about your business wants and needs, now and in the future. As a trusted partner, we are able to build a customized plan to bring your objectives to fruition. Our sourcing and procurement experts research thoroughly to find the right products your business needs, at a price that suits you. All end-to-end processes are managed by us as we negotiate costs, schedule deliveries, and perform quality assurance across the board.
Supplier Management Experts, at Your Service
Group O works with your business to find the middle ground. Our supplier management experts constantly look for ways to optimize your supply chain and they make it easy for your business to stay in the loop as well. Contact us today at 866-476-8761 to learn more today.