When you have multiple business locations, they all come along with their own needs. When it comes to getting the supplies that you need, you have the option of ordering from different places for each business location or choosing the same supplier. In many cases, choosing the same supplier for all of your business locations can provide you with many great benefits.
1- Bulk Discounts
One of the best reasons to stick with the same supplier for all your locations is that you’ll be able to take advantage of their bulk discounts. The more locations that your franchise supplier can handle for your business, the more likely they’re going to be able to offer you rebates and discounted pricing on your most widely used products.
2- Simplicity
Another great reason to always stick with the same supplier is for simplicity. Whenever anything needs to be ordered, every location knows exactly what supplier to call. Your accounting department doesn’t have to run around trying to get invoices from a plethora of different suppliers. Rather, you can make it simple by sticking to one supplier who sends invoices directly to your accounting department for all your franchise locations.
3- Predictability
Predictability is one of the most crucial components you need to look for in any great supplier. The ability of your business to adequately deliver your products and services to your customers depends on the reliability of your supplier. When you choose to go with one main supplier for all of your business locations, it helps to reduce any predictability problems for your orders. In fact, you’ll consistently have peace of mind when you stick with one supplier that does the job right.
4- Easier System Integration
In this modern-day technology age, it’s very common to utilize digitized supply chain databases. These help you to not only order products and check on their availability but also to track their delivery to your location and their eventual sale. When you choose to go with only one supplier, it helps to simplify the integration of technology. You can easily train employees at all your locations on one supply chain database instead of multiple.
5- Higher Priority and Trust
When your supplier gets all the business from your multiple locations, they’re more likely to put you higher up on their priority list. When they experience a problem where they’re unable to fulfill all of their orders of a particular product, they’ll be more likely to give what products they do have to your business over other businesses with fewer locations. Additionally, when you work with one supplier, you build trust over time. You may find that they’ll be more likely to extend you more credit and are more willing to work with you when it comes to getting discounts in the future.
If your franchise is starting to open up multiple locations, then you have a lot of decisions in regard to your suppliers. While it’s completely possible to hire a different supplier for each location, it tends to be more beneficial to use the same supplier for every location that you have.
