Turning Less into More: Navigating Supplier Consolidation for Private Sector Procurement

“Do you really need to order pens from three different suppliers?” That may sound like an arbitrary question, yet it’s one that procurement leaders pose to business unit leaders far more than they ever thought they would.

When it comes to the long list of suppliers many procurement teams need to wrangle every day, it’s understandable that some leaders may find it hard to “pen up” their frustrations as they’re being told to do more with less. But group purchasing can help. By consolidating suppliers, procurement leaders can free up significant time and resources.

Supply chain disruptions and relying on a limited supplier base creates significant vulnerability for organizations, highlighting the importance of risk management in procurement strategies.

GPOs provide access to a diverse network of suppliers, enabling organizations to build redundancy into their supply chains and reduce risk. With OMNIA Partners' extensive supplier network, companies can quickly pivot when disruptions occur, ensuring business continuity and resource preservation for procurement teams.

GPOs also conduct thorough vetting of their suppliers, assessing financial stability, compliance records, and performance history, among other criteria. This rigorous due diligence—which many organizations lack the resources to perform independently—significantly reduces the risk of supplier failure or non-compliance.

Once a supplier joins a GPO’s network, the GPO continuously monitors the supplier’s performance, as well as market conditions and emerging risks. OMNIA Partners' dedicated team oversees the entire lifecycle of agreements, providing early warning of potential issues and allowing for proactive risk mitigation.

CJ Logistics delivers global supply chain solutions across air, sea, and land. As a multimodal logistics provider, the company strives to drive innovation and continuous improvement for its customers around the world.

When Lowell Jett joined as Director of Procurement at CJ Logistics America, he brought with him years of experience working with group purchasing organizations. He quickly realized the need for change: each of the company’s 60 warehouses operated independently, with little oversight and almost no visibility into company-wide spend.

To address this, Lowell partnered with OMNIA Partners to conduct a comprehensive spend analysis. The assessment revealed fragmented purchasing patterns, untapped savings opportunities, and a lack of contract alignment.

Armed with fresh insights, Lowell presented a new procurement strategy to internal stakeholders—highlighting how targeted supplier changes could drive immediate savings. Within just a few months, he had already begun implementing new programs based on the data received.

The results went beyond cost savings. With improved visibility, CJ Logistics strengthened its supplier partnerships, increased operational efficiency, and began aligning purchasing activities with broader organizational goals. The company now takes a more strategic, data-driven approach to procurement—and it all started with a clear picture of its spend.

Interested? Learn more about spend visibility.

With free membership, access to over 1,100 contract solutions, and $30B+ billion in annual spend managed, OMNIA Partners provides the collective purchasing power, expertise, and technology to help organizations achieve supplier consolidation and their procurement goals while saving time and money along the way.

Become an OMNIA Partners member today. Contact us.