Optimizing your supply chain: Escaping the pitfall of one-size-fits-all models

In supply chain management, there is no universal recipe. We often remind our clients that the real danger lies in pursuing rigid, single-track solutions. In today’s uncertain geopolitical environment, two diametrically opposed approaches can each generate exceptional performance—depending on the company’s specific context. We illustrate this with two client cases, both demonstrating how to turn constraints into competitive advantage.

1) Strategic supplier consolidation: Maximizing leverage

A Swiss chemical manufacturer dramatically improved performance by rationalizing its supplier portfolio. The objectives were threefold:

• Increase agility,
• Reduce costs through volume-based negotiation,
• And build genuine strategic partnerships that foster innovation and value creation.

Transformation in numbers

• Supplier base reduced from 36 to 7 in just 12 months,
• Immediate savings of 12–15% on consolidated purchases,
• 20% of management time freed up for strategic projects,
• 30% faster time-to-market through standardization,
• Significant improvement in customer satisfaction via higher quality and faster OTD.

Tangible advantages

• Greater bargaining power leading to conditions unattainable with a fragmented supplier base,
• Suppliers evolving into true R&D partners, sharing innovations and expertise,
• Administrative simplification generating substantial cost savings and faster execution.

Consolidation thus fuels a virtuous circle: concentrated volumes → privileged partnerships → collaborative innovation → competitive differentiation.

Quiz: Assess your response capacity to the double shock of US tariffs and the strong franc.

2) Smart multi-sourcing diversification: Building resilience

At the opposite end of the spectrum, a Swiss high-tech tooling leader built resilience by massively diversifying its supplier base to counteract the strong franc and U.S. tariff tensions. Its initial setup did not allow for effective risk management in currency, logistics, or innovation.

Diversification strategy

• Expansion from 80 to 240 active suppliers across three continents,
• 60% reduction in exposure to currency fluctuations,
• Creation of a natural financial hedge across 7 currencies,
• Full security of critical supplies,
• Optimized delivery times thanks to greater inbound and outbound flexibility.

Measurable benefits

• Each region becomes a natural financial hedging instrument,
• Supply continuity preserved despite crises,
• Geographic spread mitigates risks linked to logistics and production capacity,
• Multi-sourcing provides ongoing arbitrage opportunities and stronger negotiation leverage.

In short: diversification turns the supply chain into a competitive weapon—both agile and resilient.

Strategic diagnosis: Choosing the right model

These two cases show there is no single truth. The choice depends on your priorities, products, and environment:

• Consolidation if your volumes are significant, collaborative innovation is critical, suppliers hold rare expertise, and sourcing regions are stable.
• Diversification if you face currency volatility, rely on critical supplies, operate in geopolitically sensitive regions, and have the managerial resources to manage complexity.

The benefits can be amplified by integrating other strategic objectives such as CSR and sustainability. For example, selecting suppliers committed to recycling increases the use of reused materials while reducing carbon emissions.

Supply chain excellence lies in contextual adaptation: accurately diagnosing your environment to design an architecture that transforms constraints into lasting advantages.

3 key takeaways :

1. Strategic consolidation: Optimize costs and innovation
   Reducing the number of suppliers can generate substantial savings, accelerate time-to-market, and strengthen R&D partnerships. This approach creates a virtuous circle: consolidated volumes = preferential terms = collaborative innovation.
2. Multi-sourcing diversification: Strengthen resilience and agility
   Multiplying supply sources reduces exposure to financial and geopolitical risks while ensuring the continuity of critical supplies. Multi-sourcing thus becomes a lever for resilience and ongoing strategic arbitrage.
3. Adapting the Supply Chain: diagnosis first
   There is no universal model: consolidation or diversification depends on the specific context (volumes, risks, innovation, resources). Excellence lies in a tailor-made supply chain architecture that also integrates CSR and sustainability considerations.