Reduce Costs and Save Time with Supplier Consolidation for Your Labels and Packaging Needs
As the cost of materials and labor continues to increase, it’s becoming more difficult for purchasing professionals to reduce expenses. If you’re buying labels and packaging from various retailers, it might be time to consider supplier consolidation. For many manufacturers, it can reduce costs and increase efficiency.
In a recent survey by Tech Republic, 47% of respondents said they manage more than 10 vendor relationships. Managing several suppliers for similar products adds unnecessary costs to your organization. At DRG Technologies, we can streamline your label and packaging needs and optimize your supply chain for better productivity after an initial consultation.
What is Supplier Consolidation?
Supplier consolidation reduces the number of suppliers you order from to streamline your operations. Businesses focus their resources on a single partner or a small group of reliable vendors instead of multiple suppliers. This strategy aims to maximize profitability while reducing time spent managing vendor relationships.
It’s unrealistic to consolidate all your business needs to one supplier. However, establishing relationships with a few key partners can lead to efficiency gains and optimized costs.
Benefits of Supplier Consolidation for Product Labels and Packaging
When you work with one retailer for various products, you can lower your “hard costs,” such as purchasing and shipping costs. You’re often able to reduce your purchasing cost through bulk discounts. Similarly, you’ll enjoy a decreased shipping cost as all products simultaneously come from a centralized source.
In addition to these hard costs, you can lower your soft costs as well. Soft costs include administrative expenses — like the salary you pay your office staff to go through the accounts payable process. Fewer invoices can significantly reduce this soft expense.
When you work with one retailer, you’ll have to sit through fewer vendor meetings, negotiations, phone calls, and emails — saving you countless hours over time. You’ll be able to reinvest this time into other, more profitable tasks to move your business forward.
Some companies offer vendor managed inventories, which can further increase your supply chain efficiency. You share your business’ inventory, demand data, and delivery with the supplier, and they ensure the right number of products appear at the right location at the right time. Essentially, you can take the time-consuming inventory process off your plate, leaving more room to focus on essential business endeavors.
One, Consolidated Customer Support Team
When you work with multiple vendors, it might be challenging to track down support when an issue arises. With supplier consolidation, you’ll have a strong connection to a specific customer support team who knows your products and supply chain. If you have an issue with a shipment, you’ll have a dedicated account manager and customer service team to support you. You’ll be able to find a solution quickly and won’t have to waste time talking on the phone.
Increased Visibility and Control
When you move all your responsibilities to one vendor, you enhance your supply chain visibility. It’s much harder to map out your supply chain or check into a minor issue when you have numerous suppliers. Should you ever need to make changes to or optimize your supply chain, you’ll have greater control to do so.
With supplier consolidation, you can build longer-lasting, stronger partnerships with the businesses you trust. These types of connections help propel both companies forward without one party fearing the other changing direction or looking for new opportunities.
Your One-Stop Shop for Label and Packaging Needs
Working with fewer vendors leads to greater purchasing power, more control, and less risk. DRG Technologies is a single vendor for all your label and packaging needs. If you’re already working with multiple businesses for these products, consolidating to one trusted partner can save you time and money.
We can handle your durable labeling, manual, instruction sheet, wire identification, and other packaging solutions to help you reduce unnecessary costs. When we collaborate with you on consolidation, you can also benefit from some of our managed services and be well on your way to a smooth supply chain operation. We offer local warehousing and fulfillment services, along with a bilingual support staff who works with your team to verify min/max levels, optimize your Just in Time (JIT) systems, and make sure your product arrives on time. We also offer vendor managed inventory and JIT programs to significantly reduce your inventory.
Take the First Step Towards Supplier Consolidation
Ready to consolidate your labels and packaging? Get started with one of our team members today.