Mitigating complexity in your supply chain would often lead to a number of saving opportunities. One such approach may be through delegating certain assembly functions to the supplier. Which means that you a customer do not have to undertake all your assembly in production.
This coupled with the warehousing services provided by customer leads to direct savings for the customer through reduced costs for assembly and warehousing. The fact that the purchasing department does not have to order from several suppliers is important from several aspects. Partly, that you minimize the time previously required for planning supplier purchases, but above all free up tied-up capital in the warehouse when the supplier provides warehousing. Which, together with a logistics solution, increases the customer’s inventory turnover rate. Overhead cost and being conscious of the total cost picture constitute standard business practice today. The result is often greater savings which means that your business can instead continue to invest in important development projects to gain more market share.