The time and costs required to process an order
can vary widely, depending on factors such
as the industry, complexity of the order and how
treamlined a company’s structure is. Yet, with all
this in mind, there is no escaping the simple rule…
More suppliers = more cost, more time and more admin
Put simply, the greater the number of suppliers
that you rely on to successfully run your business,
the more time-consuming, expensive and
admin-intense this undertaking becomes.
The power of collaborating successfully with
a single supplier should not be underestimated.
A report by McKinsey & Company1 discovered
that companies with advanced collaboration
capabilities tend to outperform their peers,
leading to increased growth.
Furthermore, working with a single source
supplier can help reduce costs, add further value
beyond simply financial improvements, and even
help foster further innovation and growth.
Although there are some exceptions, buyers
can usually choose from a range of suppliers
for any one item. This is certainly the case for the
compressed air and vacuum market. What, then,
are the key reasons that might persuade an
organisation to opt for a single source of supply
for its industrial air needs?