Vendor Consolidation

Vendor Consolidation and Supplier Management

Brewster has become the one source solution for Consolidation of Supply Base for Cost Savings and Value Generation

Here’s how it Works…

Reduction of the Supply Base and Supplier Consolidation Can Enhance Operations and show the following benefits:

  • One Source Efficiencies – Procedurally and Operationally
  • Consistency of Supply and Performance
  • Client Moves away from being Administrative Gatekeeper
  • Reaction Time Improved, Flexibility Inherent
  • Flexibility, Control, and Standardized Processes
  • Total Spend Under Control and Leveraged
  • Eliminate development, set-up expense, and management of short term relationships
  • Reduces Non-Compliance, Maverick Spending
  • Allows approved business with suppliers required for special needs but cut out of Supply Chain through Vendor Consolidation.

But unfortunately the rush to vendor consolidation and reduction has eliminated needed suppliers from the supply base based on the consolidation spree fueled by the knowledge that 80% of spend is with 20% of suppliers. This frenzy of eliminating as many suppliers as possible, to get to a number where all supplier relationships could be managed, has caused organizations to realize they just cut the only supplier capable of a service or manufacturing a part and have eliminated their mechanism of doing direct business with that company.

Brewster Procurement Group has helped companies with the dilemma by integrating that supply under a single Integrated Supply Strategic Alliance Agreement that allows companies to indirectly keep those resources without directly having to set them up as suppliers and manage their agreements.

Why Consolidate and Integrate Supply Under a Strategic Alliance Agreement?

  • Transactional Cost Is High Relative to Value when managed internally
  • It’s Not Cost Effective to Allocate Company Resources
  • Relieves Non-Strategic and Non-Core Tasks from Process
  • Non Strategic – Transactional Spend Essential to Operations
  • Total spend is under management (Cost studies show 5-20% savings on spend that is brought under management through Integration).
  • Transactional Spend not suitable for Centralization gets mixed into Strategic Spend incorrectly through non-aligned agreements.
  • One Source Creates same effects as Strategic Commodity
  • Reduces and Controls Maverick Buying
  • Reaction time is faster, Flexibility is inherent – One Source
  • Performance is maintained at a consistent level
  • Move away from being administrative gatekeepers
  • Extensive knowledge of supply markets and Flexibility
  • Efficiencies increased and operational Costs are lowered.

Brewster Procurement Group is the company to provide that Standardized Sourcing Process and Inherent Economies of Scale –Wielding full efficiencies on corporate and consolidated spend.

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