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 spending a disproportionate amount of time on minor ones, should deliver additional benefits including closer partnerships and lower costs.
Delta 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 managing the supplier-base, resulting in less production downtime. Delta Matrix operates a range of KPIs which are reviewed at regular team meetings. Any new suppliers are assessed and managed in accordance within AS9120 approved quality procedures.
