To ensure that your supply chain is cost effective and streamlined, it is best practice to consolidate orders from various suppliers. At Port UK, we implement strategies that include consolidating our buying groups so we can better understand volumes within the company as well as spending trends. We also consolidate purchases, which helps us identify the relative importance of each supplier. This helps us identify the risks of having too many or not enough suppliers for any one product.
An effective supply chain operation is the backbone of any successful business. Consolidation of goods tremendously impacts the purchasing and procurement strategies for any business. This, in turn, has wide reaching implications on the effectiveness of business operations. One of the key advantages of consolidation is the reduction of costs.