Branam Vendor Consolidation Program Eliminated 40 Suppliers And Saved One Customer Nearly $30,000 A Year

Vendor Consolidation SystemAt the request of one of its customers, a major Tier automotive supplier, Branam Fastening Systems agreed to partner and assist the company on a major vendor consolidation effort. There were multiple reasons cited for pursuing this endeavor, but maintenance and labor costs were among the primary factors. In 2015, the company spent more than $400k managing and processing transactions for their extensive list of fastener and other class “C” parts vendors.

The company also had a number of vendors that no longer met the minimum-diversification requirements needed to be a direct-supplier. However, because they were already certified and tooled to produce certain custom parts, it was necessary to continue using them as the source for these parts. By moving the daily management of over forty suppliers and their related parts to Branam, the customer was relieved of the costly burden of day-to-day processing and management concerns.

One purchasing manager stated, “Branam is one of our most trusted vendors – easy to work with and never failing to deliver on a promise. When the time came to choose our top three partners for the consolidation project, having them onboard was crucial.”

After being provided a list of parts and vendors, Branam did a thorough audit of the current supply chain. In some instances, agreements were left untouched and pricing was maintained at it’s originally agreed upon rate. For many parts, Branam was able to negotiate lower prices with current suppliers. When it was warranted, fasteners were re-sourced to either save money or ensure a more stable supply for the customer. Net, the company saved more than $30k a year and the consolidation efforts allowed the customer’s employees to focus on the more important aspects of their respective department’s responsibilities.

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