At a recent health and safety event I found myself in deep conversation with a large organisation. It seemed they were facing a common scenario for countless businesses: Sourcing all the different categories of products they required from multiple suppliers.
Unsurprisingly, this ‘supplier juggling’ was causing both the procurement and health and safety departments particular concerns. Also unsurprisingly, they wanted to eliminate these issues as soon as possible. I suggested it would be beneficial to have a further conversation with me about consolidating all their product needs under our one-stop solution offering.
It’s not the first time I have had an organisation talk openly with me about the issues that using multiple suppliers causes. It won’t be the last.
The problem is that supply chains can grow quickly, especially during rapid growth. New roles are created, new dangers faced, new requirements added, new standards need to be met… the list goes on.
On many occasions, the sourcing of products is independently executed by different departments and category managers, which means new suppliers are constantly joining the supply chain.
Before they know it, the business is juggling too many suppliers and simply cannot keep track. When I speak to those facing this situation, they find that this causes uncertainty about delivery, costs, safety, and product allocations. They also face an inconsistency of service, and staggered responses to enquiries and delivery. Let alone the added administration of all the different invoices coming in.
At this point businesses need to decide: Do I continue down this road, or do I source my supplies from one distributor?
There are several common terms for this solution that suppliers use - “One stop shop”, “managed PPE solution”, “supply consolidation”, etc. But do they all actually offer the same thing underneath? Or are some of them saying little more than simply, “we sell every type of product you need to buy”? This is why the decision to consolidate – and who with - should be a carefully considered and interrogative process of supplier analysis.
I believe the right candidate should deliver ALL this…
You’ll notice I said, ‘should deliver’, not ‘will deliver’. That’s because if the supplier isn’t the complete package - distributor, safety expert, account manager, order management software provider, advisor partner, product finder, innovator, sustainability provider, on-time in-full supplier, and customer service role model - you might be missing out on a benefit that you really need. A benefit that would have undoubtedly been available from at least one of your supplier partners if you had stuck with the multiple supplier model.
So how can you ensure you’re asking all the right questions in your supplier research – or tender process - that will cover everything you currently need and might need in the future?
My advice is to use a comprehensive one-stop solution supplier checklist - like this one. You can use this to assess which (if any) of your suppliers can provide all you need to be the genuine full solution provider you deserve, not just simply a decent distributor of products with a few extra services.
I hope you find this checklist useful. We use this at Tower to ensure we’re in the best position to provide the ultimate one-stop solution. It also means our partnership model usually suits larger companies, who benefit from long-term gain and oversight over product use, spend, and allocation.
If you want to know more about how Tower partnerships work in real-life situations, then download our Tower case studies. You can also fill out a contact form, or call the team on 01202 718000.
With over 20 years experience driving “best-in-class” operating standards and solutions, Simon works in partnership with customers as a trusted advisor and sustainable expert supplier.
