Survey participants were also asked to identify the specific departmental benefits their companies enjoy with a reduced vendor base. Because these questions were open-ended, the responses were wide-ranging:
Purchasing: This was the department that received the most answers. Nearly a third of the comments addressed the issue of reduced in-house work (fewer contracts to track, reduced number of purchase orders and fewer supplier audits). Better prices were mentioned by 18.2%, followed by cost control at 10.4%.
Package development: Almost 28% of respondents answered with language that highlighted better communications and cooperation with suppliers. Another 26% said that supplier response and service had improved, and 7.4% said that package design or performance had improved. However, more than 7% indicated there had been no change.
Production: Better quality and fewer rejects was the benefit identified by more than 31%. Improved material supply or better parts availability was cited by 15.8%, followed by on-time or improved delivery at 10½%.
Package engineering: Because few participants came from engineering, this department had the fewest identified benefits. Better communications and cooperation with suppliers was noted by 21%. But almost the same number of participants indicated that a reduced vendor base had little or no change on package engineering.
Quality assurance: Fewer rejects and more consistent quality were the benefits cited by more than half the participants. Easier tracking of problems was also mentioned by several respondents. However, the same number of participants said that vendor consolidation meant either less work, or conversely an increased workload reviewing specifications.
See the main story that goes with this sidebar: Fewer vendors in manufacturers’ plans
