Reduction in the number of suppliers and minimum spend per supplier
One of the world’s largest companies in the field of locking systems decided to optimize its supply chain. Previously, they worked with a wide range of smaller suppliers, which led to high costs for order management, logistics, and negotiating contract terms. With the goal of simplifying processes and increasing efficiency, they established a rule: each supplier must reach a minimum annual turnover of 500,000 EUR.
What were the main problems?
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Too many suppliers – the company managed hundreds of smaller suppliers, which burdened the administration.
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Low bargaining power – it was more difficult to negotiate volume discounts and favorable terms with smaller suppliers.
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Complex logistics – dozens of different partners meant higher transport costs and longer delivery times.
What did PARTORY do?
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Consolidated supplies – instead of dozens of smaller suppliers, we provided the company with a wide portfolio of products from one strategic partner.
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Simplified order management – we reduced the number of contracts and simplified the administration associated with purchasing.
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Negotiated better price terms – thanks to larger orders, it was possible to obtain volume discounts.
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Optimized logistics – we reduced the number of transport routes and sped up deliveries.
What was the impact?
Thanks to this change, the company:
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Reduced administrative burden because the number of suppliers was significantly decreased.
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Saved on costs because volume orders brought better price terms.
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Gained more efficient logistics, which enabled faster delivery of materials.
A purchasing strategy focused on supplier consolidation is not just about savings – it means better overview, better conditions, and easier management of the entire process.