Supply Chain Consolidation: The key benefits to your business
28 October 2020
When it comes to supply chain management, less is proving to be more. As the global operating environment becomes more volatile and uncertain, businesses are understandably looking to strip complexity out of their supply chains. Supply chain consolidation has become increasingly popular over the past decade, with the COVID-19 pandemic further highlighting the need for businesses to slim down supply chain costs and improve overall efficiencies.
Pemco Additives AB specialises in developing ‘tail project’ solutions for suppliers, enabling them to reduce costs, reduce risks and improve customer relationships.
The enhanced accuracy of information, cost-effectiveness, shared risk and improved profitability offered by a strategic approach to supply chain consolidation flows directly to the bottom line. Here are five benefits of adopting an improved supply chain consolidation strategy for your business.
- Reduced Risk & Volatility
Streamlining chains significantly reduces risk across the entire span of any supply network. Managing fewer suppliers enables greater focus on risk reduction strategies throughout the supply chain.
- Accelerated Transaction Times
Stripping time out of the supply chain delivers enhanced customer service, improved speed to market, faster turn-around times for order completion and reduced ‘out of stocks’.
- Lower Purchasing Costs
As a company slims down its base of suppliers, its administrative costs decline. By focusing resources on a tighter cluster of suppliers, companies are enjoying sharper pricing.
- Lower Transaction Costs
With a reduced number of suppliers to manage, the administrative costs involved in loading a supplier into in-house systems and the time allocated to completing transactions and managing relationships all decrease significantly.
- Improved Supplier Relationships
With fewer suppliers to coordinate and manage, organisations are finding it easier to focus on building robust and long-term relationships with key suppliers and nurturing the efficiency, responsiveness and performance of their supply chain.
From regional Petrochemical businesses to global manufacturers, Pemco Additives AB utilises its in-house expertise to improve the operational efficiencies of customers and takes care of all compliance demands, warehousing, quality control and safety whilst providing technical support and the highest possible standards of customer service.