MES, Inc.
Supplier ConsolidationWhite PaperSeptember 20209 min read

MES Supplier Consolidation Solutions

MES Supplier Consolidation Solutions
Key takeaways
  • Consolidation eliminates retooling — and the significant capital cost that comes with it
  • Immediate efficiencies in warehousing and shipping costs
  • A systematic method for realigning supplier portfolios that have drifted out of shape

The MES Supplier Consolidation Solution provides a proven, systematic program that has repeatedly delivered cost savings and quicker lead times to MES customers — eliminating the need for retooling, with significant capital cost savings.

The consolidation solution also yields immediate efficiencies that reduce warehousing and shipping costs, along with many other supply chain benefits.

How supplier portfolios drift out of alignment

The sourcing portfolios of manufacturers are filled with OEMs and Tier I suppliers representing various locations, processes, and capabilities. By listening to its own manufacturing customers, MES has identified multiple forces that, over time, necessarily require changes in the working relationships between customers and suppliers:

  • Mergers and acquisitions that multiply supplier bases overnight
  • Evolving products and services
  • Heightened customer expectations
  • Shifting market demands and global needs

The cost of proliferation

Any combination of these tidal business changes can — and often does — lead to a proliferation of new suppliers and escalating operational costs. Each additional supplier carries its own qualification burden, quality system, communication overhead, freight lane, and inventory buffer.

Left unmanaged, the portfolio becomes a drag on working capital and management attention that no single line item ever makes visible.

A proven method for streamlining

MES Supplier Consolidation Solutions serve as a systematic method for streamlining supplier management: existing tooling is transferred rather than rebuilt, qualified processes are preserved, and fragmented shipments are consolidated into managed logistics flows.

The result is fewer relationships to manage, lower total cost, faster lead times, and a supply base that is aligned with where the business is going — not where it used to be.

If your supplier portfolio has grown by accretion rather than by design, consolidation may be the highest-leverage move available to you. MES can assess your portfolio and show you exactly where the savings are.

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