Supplier consolidation without losing choice

Bring hundreds of small and one-time suppliers back to one supplier and one single creditor. Your teams keep buying what they need; your vendor base, invoice volume and admin shrink.

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What is supplier consolidation?

Supplier consolidation, or supply base reduction, means bringing the number of active suppliers down to the ones you really need to manage. For tail spend that is hard: the purchases are small and varied. Spot Buy Center solves it by acting as one supplier and one single creditor for all those C-suppliers, so you consolidate the vendor base without forcing people onto a narrow catalogue.

Where the supplier base comes from

In most companies a small share of total spend is spread over the majority of suppliers and invoices. Every one-off purchase, local service or web shop order risks a new vendor record. That is where consolidation pays off most.

How we consolidate your C-suppliers

  1. We analyse your vendor list and invoices to find tail spend and one-time suppliers.
  2. New non-strategic purchases go through Spot Buy Center instead of creating new vendors.
  3. Existing small suppliers are phased out of your ERP as their purchases move to us.
  4. You keep reporting on every purchase, by supplier, category and cost centre.

What changes

BeforeAfter
Active suppliersHundreds of C-suppliersStrategic suppliers plus one single creditor
New vendor requestsEvery one-off purchaseNone for tail spend
Invoices to processMany small invoicesOne digital invoice flow
Choice for usersLimited by approved suppliersAny supplier, worldwide

Results

Clients typically reduce their supplier base by 50% or more. See how the model works for procurement teams and how the single creditor service handles invoicing and payment.

Supplier consolidation: frequently asked questions

What is a C-supplier?

A C-supplier is a supplier with low spend and low strategic importance, often used once or a few times a year. They make up most of the supplier base but a small part of total spend.

Will our users lose choice of suppliers?

No. People can still buy from any supplier or web shop. The purchase simply runs through Spot Buy Center instead of a new vendor record.

How fast does the supplier base go down?

New tail spend moves to Spot Buy Center from the start. Existing small suppliers are phased out as their purchases move over, so the effect grows month by month.

Do strategic suppliers change?

No. Strategic and contracted suppliers stay with your procurement team. Consolidation targets the long tail.

How do we keep visibility on spend?

Every purchase through Spot Buy Center is reported per supplier, category and cost centre, so you see more than before, not less.

Contact us

Contact us and get a demo that will change the way you see tail spend management.

contact us