“Why did we switch suppliers when the quality of this new product is simply not up to par?”
If you own or manage a franchise or other multi-location operation, you may have heard that complaint before. Companies are in the business to make money, and one way to ensure this is to keep costs down. Sometimes, however, poorly thought-out purchasing decisions can come at the expense of your business reputation. Having a few quality, single source suppliers you can rely on across all major disciplines can be a great benefit to multi-location managers who need to watch their bottom line while not impacting the quality of their products or services. Read on to learn five benefits of the many benefits that come with using the same suppliers for multiple business locations.
1. Single Source Suppliers are Time Savers
It takes time for buyers to shop around for the best price. And then, if they want to do their due diligence, they can’t stop there. They need to vet the product or service they are expecting to receive. What if they put in a lot of time and effort to have it –as our opening sentence asked–be simply not up to par? Moving away from an established single source supplier you can count on is often not worth the time.
2. Single Source Suppliers are Money Savers
Your purchasing department can spend long hours calling vendor after vendor to get the best prices, but the truth is if you lock in with a quality, reliable supplier with competitive prices, it’s often best to stick with who you know. Chances are what you might save on one item from another vendor will more than be made up by the bulk discount you’ll get from your single supplier who carries everything you need.
The keywords, of course, are quality and reliability. If you’re not sure which vendors can best help your franchise, you can find expert business advisors online who will do the vetting for you. Companies track and evaluate a wide range of products and services to help eliminate the guesswork for your buyers.
3. Single Source Suppliers Build Stronger Relationships
When your employees are buying from one supplier rather than multiple, they have the opportunity to build lasting business relationships. Those sellers will likely value the bulk business you send their way and give them greater incentive to go the extra mile for you when you need something in a rush.
4. Single Source Suppliers Ensure Consistency in Quality
Well-vetted, trusted suppliers who provide quality raw materials and other products will not only help ensure your end products have a consistent quality, but they will also enhance your brand.
5. Single Source Suppliers Reduce Administrative Costs
Buying from multiple vendors also means your accounts payable department will be receiving invoices from multiple vendors. With a single source supplier, all your monthly purchases can be consolidated into a single invoice. In addition, those suppliers may be able to integrate their systems with yours to provide better efficiencies.
