Converting a tail of minor suppliers to a single, tier-one source will lead to improved payment terms, less administration and a reduction in freight costs.
Re-focussing on key, tier-one suppliers, rather than a disproportionate amount of time minor ones, should deliver additional benefits including closer partnerships and lower costs.
Matrix has a wide supplier-base and is likely to be trading with many of the minor suppliers already, allowing spend to be combined and better pricing to be negotiated.
Service levels, especially on-time delivery will improve by moving business to a key partner with responsibility for the managing supplier base, resulting in less production downtime. Matrix operates a range of KPI’s which are reviewed at regular team meetings. Any new suppliers are assessed and managed in accordance within AS9120 approved quality procedures.
The benefits of using Matrix for Vendor Reduction include:
- Less administration
- Lower freight costs
- Reduced vendor base
- Increased flexibility
- Improved cash flow
- Better delivery performance
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