Leaders in the supply of equipment, consumables and servicing in operational logistics and fulfilment, Southgate Global, has reinforced its commitment to improving supply chain efficiency with the launch of its first white paper on supplier consolidation.
It comes as an increasing number of manufacturing, 3PL, e-commerce and warehouse operations are seeking to reduce their supply base and find single-source solutions in a bid to improve efficiency and streamline operations.
The white paper titled, ‘Why and how to consolidate your supply base in operational logistics and fulfilment’, is the latest development from Southgate in its mission to support organisations in reducing supplier fragmentation.
Dan Brasier, CEO at Southgate Global, explained how the operational and logistics sector, and more specifically industrial packaging and materials handling supplies, have been most prone to supplier fragmentation over the years, as historically, suppliers were unable to meet the entire scope of an organisation’s full operational needs and, too often, this continues to be the case.
Now, as commercial organisations look to reduce costs by simplifying their supply chains and speeding up efficiency, supplier consolidation is becoming increasingly popular.
Brasier added: “We understand the risks, financial costs and inconsistencies that can arise when using multiple suppliers. Not to mention that it can lead to slower production, different equipment failing to work together seamlessly, increased administration costs, varying quality and an inventory that is more difficult to manage.
“In listening to such challenges, we decided to proactively address the shift in the market and repositioned Southgate to highlight our ability to offer end-to-end solutions in order to fully meet this need.
“Now we’re looking to use our knowledge and expertise in operational logistics and fulfilment to provide advice and practical solutions to others who are seeking to address supplier fragmentation issues in relation to their packing equipment consumables and servicing needs.”
Aside from exploring key benefits and actionable recommendations, Southgate’s white paper also includes a Supplier Consolidation Evaluation Matrix. The downloadable tool allows organisations to assess suppliers against a particular set of criteria to guide them through the process of supplier consolidation.
Once scores are generated, users then create a consolidation strategy, which helps businesses identify the expected benefits of refining the number of suppliers they use, whether financial or non-financial.
To download Southgate’s latest white paper on supplier consolidation and to use its Supplier Evaluator Matrix, visit: southgateglobal.com
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