Supplier Consolidation: The Newest Agricultural Manufacturing Trend

MAECO_Supplier Consolidation The Newest Agricultural Manufacturing Trend

There are two concerns and three benefits to supplier consolidation. With our track record at Maeco, we have already solved any concerns which leads you directly to the three benefits. Below, we resolve those concerns and go over the benefits.

CONCERN #1: WEAKER BIDDING POSITION

Some major manufacturers and purchasers prefer a large bidding pool of suppliers to increase leverage in the bidding process. Maeco already has competitive pricing and we work with our clients to save costs throughout the entire process—thus finding the right offshore manufacturer and  saving money on logistics.

CONCERN #2: PUTTING all EGGS in ONE BASKET

When new component manufacturers pop up every year, legitimate concerns may erupt over the longevity of these newer component manufacturers. Maeco has been around for over two decades and continues to benefit from steady growth. The risk of consolidating to fewer suppliers is significantly decreased for an organization that has enjoyed our longevity.

3 BENEFITS to CONSOLIDATING COMPONENT MANUFACTURERS

Improved Communication

The key to an excellent supply chain is communication. The more suppliers you have, the more complex your communication becomes which cost time and money. If you have a component manufacturer that continues to perform for you, then consolidation is an easy decision.

Better Rapport with your Suppliers

When you bring more business to a supplier, they can offer you better pricing structures and extended services. When you build a relationship with your component manufacturer, they begin to anticipate your needs and become more than a contractor—they become a strategic partner.

Ease and Efficiency with Shipping

Maeco is already known for our outstanding no-hassle, no-surprise shipping policy. We deliver your products stateside on time and with no surprises. Your quoted delivery cost reflects the net cost of the product, including ocean freight, U.S. Customs fees, import fees, etc. Using multiple production suppliers allows for savings through combined shipping and ordering often allows for tighter controls for inventory management.

In summary, consolidating to fewer suppliers is a new trend for a reason. When you consolidate suppliers, especially a component manufacturer with the experience and track record of Maeco, you create an extension of your company as opposed to managing multiple contractors and getting varying results.

CONTACT MAECO for YOUR INDUSTRIAL and AGRICULTURAL NEEDS

MAECO of Oregon has a successful track record for prototyping, manufacturing, and delivering industrial and agricultural components. Whether you need to find the best quality industrial or agricultural components at a competitive price or a single custom solution, call (503) 798-5596 or email us using this link.

 

Leave a Reply

Your email address will not be published. Required fields are marked *