In today’s unstable economic climate, businesses must search within for ways to increase profit margins. One tactic with proven results is to streamline fragmented supply bases through supplier consolidation.

By relying on fewer approved suppliers, businesses attain a competitive advantage through improved pricing, product development, quality and service. At World Media Group, we view the supply chain as a cherished asset that must be constantly attended to in order to achieve optimal results. Here are some examples of the added value that comes with a consolidated supply chain:

• Cost Reduction by cutting unnecessary logistics
• Inventory optimization and management
• Consolidate warehouse costs
• Enhanced flexibility and increased reaction time
• Increased focus on development
• Increased customer satisfaction

It is important to note that consolidating a company’s distribution operation is no small task. This decision affects customers, employees and supply chain partners, sometimes drastically.  Supply chain consolidation requires a critical understanding of many issues: labor, logistics, technology, automation cost/benefit and customer service. Only after a complete review of these essential elements can business leaders discern where their company can create significant savings.

In short, though supply chain consolidation may have consequences at the front end, the long-term savings are often worth the headaches. Locations are an integral factor when examining potential supply chain models. National distribution hubs, such as Rock Island, IL, Indianapolis, IN, and Cincinnati, OH are population centers with major, easily accessible roadways and airports. These locations allow freight efficiencies that optimize costs without compromising the typically smaller, but more frequent, order demands.

In the 21st century, manufacturing firms require the agility to respond to constant changes in supply and demand. It only proves logical that this is more easily accomplished from a reduced number of sources. By integrating design, production, logistics and distribution into a single process, companies can re-focus their efforts on brand and product development. To learn more about the added value that comes with supply chain consolidation, click HERE.