Pros and Cons of Supplier Consolidation

Gain a better understanding of different approaches to find a strategy for supplier consolidation within your organization.

Getting the maximum value out of the supply base is an important but often misaligned objective. When preferred suppliers aren't leveraged, cost savings and optimal contract potential are greatly diminished. Many organizations struggle with the development of a strategy to address tail end spend to achieve objectives. This leads to lost opportunities and less visibility. This material helps the individuals responsible for managing the company's supplier contracts design a supplier consolidation program. Being able to understand the benefits and potential risks is an important element to establish a program that aligns to your organization's objectives. The content will explain different strategies that can be developed based on factors at hand, and provide an understanding of how to effectively measure and report the results. This is an extremely important and overlooked element of supplier consolidation. An ineffective supplier consolidation approach can diminish the potential value of strongly negotiated contracts while also posing unforeseen risks. The material will provide the pros and cons of different approaches to help you decide the right strategy for your organization.