article thumbnail

Automotive Procurement: Time to Rethink Supplier Consolidation?

Supply Chain Brain

Call it vendor consolidation, volume concentration, or reduction of part-number proliferation, the endgame is always the same: reduce the number of vendors at the part and enterprise levels, to help drive cost efficiencies. The concept of sole sourcing is as old as that of strategic sourcing.

article thumbnail

Introduction to Supplier Consolidation

World of Procurement blog

Supplier consolidation refers to the strategy of reducing the total number of suppliers that a company deals with and instead focusing procurement spending on a select few preferred suppliers. To mitigate supply chain risks and improve business continuity by reducing dependence on many small suppliers.

professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Procurement transformation 2025: Why invest in procuretech and how to make the case – Onventis

Spend Matters

By consolidating spend through our system, customers are looking to gain clearer visibility and control over procurement. Metrics around supplier consolidation and spend concentration are also common. Customers use Onventis to consolidate suppliers and negotiate better terms.

article thumbnail

How Supplier Consolidation reduces Procure-to-Pay pain

Procurement Software

The topic of supplier consolidation is a popular one, especially across indirect procurement spend. Furthermore, the vast majority of P2P issues and day-to-day firefighting usually comes from this long tail of non-core, non-strategic suppliers. Supplier Consolidation: how can it reduce Operational P2P issues ?

article thumbnail

Supplier Consolidation: What It Is, Benefits, and Risks

Planergy

Supplier Consolidation: What It Is, Benefits, and Risks. Best Practices & Tips Strategic Sourcing Supplier Relationship Management. Supplier consolidation involves reducing the number of suppliers you work with. Pros include better supplier relationships, cost savings, and time savings.

article thumbnail

Spend Matters Future 5 2024 – Introducing True ValueHub

Spend Matters

For manufacturing companies with a high mix of direct materials parts portfolio, the solution can identify duplicate parts, supplier competitive index and opportunities for SKU and supplier consolidation for sourcing efficiency.

article thumbnail

Strategic sourcing enters a new age. Are you keeping up? (Part 2)

ivalua

In today’s business environment, however, there are fewer opportunities to drive cost improvements using traditional strategies such as supplier consolidation or strong-arming your way to supplier price concessions. Improving costs remains a core competency for any sourcing organization. alternatives.