Technical procurement often includes many small orders, many suppliers and a large number of item indexes. The value of a single order may be low, but administrative work, confirmations and delivery control take time.
What is supplier consolidation?
Consolidation means organizing component groups and reducing the number of supply sources where it is possible and justified. The goal is not only to reduce supplier count, but also to simplify the entire procurement process.
What areas should be checked?
- number of suppliers for repeatable components,
- number of orders per month,
- time required to handle small purchases,
- repeatability of item indexes,
- shortage and urgent order risk.
In practice, consolidation can be combined with VMI, Kanban or DBSS to improve not only the supplier base, but also the way the whole process is handled.
Frequently asked questions
Does consolidation mean giving up all current suppliers?
Not always. It usually starts with analyzing repeatable component groups and identifying areas where handling can be simplified.
Want to turn this knowledge into a practical process?
Use the C-Parts procurement audit or explore the interactive supply process map to better assess cooperation opportunities with GAUS Components.