For mega-corporations like Walmart preferred supplier programs obviously ensure consistency and generate gigantic savings. Yet small and mid-sized businesses can benefit from them also. So if you don’t have an active program, here are some reasons to consider starting one:

• [A preferred supplier program] Results in part standardization, and that lowers hidden costs
• Increases your ability to invest in supplier relationships (and that usually results in advice and guidance that improves purchase value and/or total cost)
• Trains the organization on disciplined buying behaviors
• Decreases cycle times over the long haul as employees do not need to do independent research on market offerings and prices

Perhaps you are looking to implement your first e-Procurement system - perhaps you are looking to tune your existing system. Wherever you are on the journey towards more effective Purchasing, consider implementing a preferred supplier program. It’s a smart move, even if you’re not Walmart.