White paper helps business navigate complexities of supplier consolidation

Logistics and fulfilment specialists Southgate Global have launched their first white paper on supplier consolidation.


he firm, which is based in King’s Lynn and has over 3,000 customers in 20 countries, observed that an increasing number of manufacturing, 3PL, e-commerce and warehouse operations are seeking to reduce their supply base and find single-source solutions to improve efficiency and streamline operations.

The white paper, ‘Why and how to consolidate your supply base in operational logistics and fulfilment’, aims to help companies reduce 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.

Historically, suppliers couldn’t meet the entire scope of an organisation’s full operational needs and this is still often 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.

“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 tcreate a consolidation strategy, which helps businesses identify the expected benefits of refining the number of suppliers they use, whether financial or non-financial.

With a strong strategy in place, organisations are then encouraged to speak to their selected vendor or vendors about pricing, package deal negotiations and discounts.

Looking at the future of the supplier market, Brasier said: “As logistics challenges intensify, the demand for a supplier offering an integrated end-to-end solution will only grow.

“Building a strong, long-lasting relationship with a single supplier who offers direct and in-direct cost savings and efficiencies, and has a wealth of expertise and resources, will all begin to set operational logistics and fulfilment suppliers apart from one another.

“Through our wealth of equipment, consumables, and servicing expertise, backed up by our design and global sourcing capabilities, we plan to be the reliable single source that keeps our customers’ business moving.”

Download Southgate’s latest white paper on supplier consolidation and its Supplier Evaluator Matrix here.

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