Delta Impact | Vendor Tail Management

Vendor Tail Management

Very often large OEMs find themselves with a myriad of suppliers or perhaps a logistical headache brought on by a transition to a new geographical location.

It is not uncommon to see large OEM organisations with ‘Pareto’s Law’ in evidence. Typically 80% of the material value required will be sourced from just 20% of their supplier base.

It is usual for purchasing strategy to reduce material cost year on year by working closely with the largest suppliers and focusing on the 80% of the material spend. We have been very successful at assisting this strategy by reducing acquisition costs and the number of vendors at the opposite end of the supply chain. This 20% of materials spend will be with a “tail” of smaller non-strategic suppliers.

Our solution of consolidating this tail means that our customers benefit from:

  • a streamlined supply chain
  • lowest material cost
  • conversion of supply chain to only strategic partners
  • reduced ‘hidden’ costs of acquisition
  • up to 80% vendor reduction
  • a dedicated, flexible, reliable supply partner

The Delta Advantage

With over 250 established, manufacturer-direct trading relationships and customers across Europe, Asia and North America, we are able to work effectively with our customers to ensure our service and products are available at the right price, right quality and at the right time.

The Delta advantage can be defined as:

  • Direct and indirect cost savings
  • Inventory reduction to improve customer cash flow
  • Lead-time reduction to shorten time to market