One of the of key factors for a lean supply chain is to rationalise the supplier base. Many companies are working towards a reduction of their supplier base in order to reduce the total cost of ownership of some of their categories.
Some of the key benefits of a supplier base rationalisation are:
- Higher procurement efficiency.
- Reduction of administrative workload and costs.
- Simplified purchasing process.
- Development of a real partnership with your key suppliers.
In the case study video, Schneider Electric explains how Macfarlane Packaging, NovuPak’s partner in Ireland and the United Kingdom, has contributed to reduce their supplier base and some of the benefits this action has brought.