Dealing with a large number of manufacturers can quickly become overwhelming. When faced with a product recall or faulty component, tracking down the vendor responsible is difficult and time-consuming, while production is halted due to just one component.
What is often overlooked, however, is that one supplier may be able to manufacture and provide all the components you need for certain assemblies—so why source from multiple vendors? Sourcing components that need to work together through one qualified manufacturer is a smart way to solve problems faster and save time and money.
There are many ways manufacture consolidation can be beneficial to your business.
Receive consistent quality across all components.
When you have fewer suppliers to track, it’ll be easier to manage their performance. Not to mention, the more components your vendor is responsible for, the more accountable they will be when it comes to quality and delivery time. In addition, the components will be machined to work together from the start, so you eliminate finger-pointing and time wasted. You’ll receive assemblies faster without compromising quality and have order transparency from start to finish.
Offer more competitive prices to your consumers.
Sourcing through fewer suppliers lowers production costs and reduces any additional handling charges and delivery costs. And besides buying at a lower price, instead of paying multiple vendors individually, your processes are streamlined for better efficiency. Overall, all of the time and cost savings lead to better economies of scale so you can offer customers more competitive prices.
Reduce workloads and better allocate resources.
The amount of administrative work it takes to deal with multiple vendors is significantly cut down. You’ll have fewer suppliers to communicate and visit with, and fewer contracts to negotiate and re-negotiate. This lowered purchasing workload enables you to designate those resources to more crucial operations.
Solve problems faster with a close vendor relationship.
When you have multiple vendors, building close relationships with each one is virtually impossible. Being able to work one-on-one with a supplier ensures both of your teams have a clear understanding of each other’s roles and responsibilities. They’ll be able to anticipate your needs better and provide you with custom solutions that make your partnership work better. And when a problem does come up, the source of the issue is easily identifiable and can be fixed much more efficiently.