5 ways your business can benefit from using a single supplier

5 ways your business can benefit from using a single supplier

Your business undoubtedly relies on other companies to provide goods or services so you can provide the goods and services you offer. For your business to run as smoothly and efficiently as possible, your supply chain needs to be efficient. You need to be able to rely on those who are delivering you products, so you can make good on your commitments.

It’s also vital that your internal processes for dealing with suppliers are efficient and that you’re not spending unnecessary time paying invoices and reconciling payments.

The best way to achieve this is through a single-source supplier. This means you get most of the products you use daily from a single trusted supplier, rather than several different businesses. This arrangement can be mutually beneficial for both you and your supplier. 

Here’s how single sourcing can help improve supplier efficiency and streamline your business operations.

1. Less to deal with

One of the biggest benefits of having a single-source for supplies is fewer people and less administration to deal with. Fewer account managers and salespeople you need to talk with to secure your products, as well as fewer invoices and less reconciliation. There are also fewer ordering forms to complete or portals to log into, as you’re able to do it all in one place.

The reduced engagement and admin burden also allows your staff to focus on other, more productive, tasks that add value to your business.

2. Greater consistency and predictability

A single-source supplier also adds a higher level of consistency. Working with various companies often means different lead times for products, which you need to keep in mind when ordering and maintaining stock levels. With a single-source supplier, each item will usually have the same lead time, so you’ll always know when something’s due to arrive.

This can lead to efficiencies in your stock supply. Because you know how long items take to arrive, you may be able to hold less inventory, freeing up storage space and improving your cash flow.

Better consistency can also improve product quality and customer service from your single-source supplier. To retain your business, they will need to ensure consistent quality and a strong customer experience, to ensure your needs are met.

3. Better spend tracking

With less paperwork to deal with, it’s also easier to keep track of spending. Fewer invoices and associated paperwork makes it much easier to see at a glance how you’re performing against budget and whether your incomings and outgoings are optimised.

Also, if your business is based in multiple locations, a single-source supplier will often offer delivery to each. This means you don’t need an internal warehouse to hold and distribute supplies, or dispatch separate orders to each location.

4. Cost savings

Business owners and managers often claim that multiple supplier agreements keep suppliers ‘on their toes’ and let you cast your net wider to find better pricing. This can often be a false economy due to hidden costs.

Having a single-supplier will often help you cut shipping and distribution costs and reduce business overheads through increased efficiencies. There’s also the economies of scale to consider; buying more products from one supplier can often decrease the per-unit costs. 

Some businesses will even price match products. So, even if you find the same item for cheaper elsewhere, by talking to your supplier you may reach agreement on price. Plus, you won’t have to go through all the hassle of changing suppliers and all the associated work that comes with that.

5. Stronger relationships

Working with a single company also helps build a stronger, longer-lasting relationship with your supplier. Besides improving your working relationship, there’s also more accountability, which helps ensure the supplier continues to deliver a high level of quality in their products and services.

How ChemMate can help

If you’re still not convinced, think about how you organise your weekly grocery shop. While a few people still go to multiple stores for individual items – such as a butcher for meat, a baker for bread and a veggie store – most people these days go to their preferred grocery store to get it all. 

Why? Because it saves time and makes it easier to stick to your budget. Plus, you trust they’ll have the products you want at a reasonable price.

Having a single-supplier for your company’s consumables delivers the same benefits for your business. And you don’t even need to step out of your office door. Choosing a single supplier will improve supplier efficiencies and make it easier and more cost-effective to run your business.

If you’re looking for a reliable and trustworthy supplier for your commercial and industrial cleaning products and services, get in touch with the team at ChemMate. Start enjoying the benefits of improved supplier efficiency today!