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Southgate Recognises Growing Demand for Single-Source Suppliers

Southgate Recognises Growing Demand for Single-Source Suppliers

Southgate Global, a leader in the supply of packaging equipment, consumables and servicing in operational logistics and fulfilment, has configured its organisation to respond to the global demand from customers for single source solutions as companies look to streamline operations in order to stay ahead.

As the fast-evolving landscape of logistics continues to drive the need for efficiency, organisations are moving away from sourcing their logistics equipment, consumables, and services from a broad spectrum of suppliers.

Instead, Southgate is witnessing first-hand the increasing number of manufacturing, 3PL, e-commerce and warehouse operations seeking a single-source solution.

It comes at a time when the UK Freight and Logistics Market size is estimated to grow at a CAGR of 3.55 per cent during 2024-2029, reaching an expected USD 137.77 billion by 2029[1].

On why this is a trend developing now, Dan Brasier, CEO at Southgate Global, said: “Whether you are a single site operation or a large multinational corporation, one of the major trends that commercial organisations have recognised across the board is the need to reduce costs by simplifying their supply chains, more specifically, reducing the number of suppliers and consolidating the value of their spend.”

One of the areas that has been identified as most prone to supplier fragmentation is operational logistics and fulfilment, especially in relation to their packaging equipment, and consumables, to say nothing of their related servicing, design and sourcing needs. A trend which is a potential result of many suppliers historically being unable to meet the entire scope of an organisation’s picking, packing, strapping, wrapping and dispatch needs. Brasier added: “Juggling various service providers to source your packaging and consumables can be challenging and cause unnecessary strain on your supply chain. Not to mention that it can lead to slower production, different equipment failing to work together seamlessly, increased administration costs and an inventory that is more difficult to manage.

“Alternatively, by offering customers the choice to consolidate the value of their spend into one supplier, it gives them the option to negotiate better deals, reduce costs and simplify their ERP.”

In recognising this challenge, Southgate has configured its organisation specifically to meet this need fully. Serving over 3,000 customers in more than 20 countries around the world, Southgate prides itself on offering an end-to-end solution, a reliable partner that customers can turn to at every stage.

For example, its packaging equipment and consumables offer covers over 5,000 separate SKUs across all the key categories.

But they also ensure that the solutions go beyond all the key products an operational logistics and fulfilment team might need to include. For instance, Southgate’s Technical Services offer maintains, repairs, and repurposes customers’ equipment even if it hasn’t been supplied by them.

For those looking for additional support when logistics problems can’t be solved with ‘off the shelf products’, Southgate offers bespoke design and development, sourcing and even ESG legislative compliance advice.

Brasier added that not only does this single approach reduce customers’ costs, but it also builds better, longer lasting and more trusted partnerships, with only one place to turn for all the support an organisation might need.

Looking at 2024 and beyond, Brasier said: “As logistics challenges intensify, the demand for a supplier offering a comprehensive package will only grow. Building a strong, long-lasting relationship with a single supplier who has a wealth of expertise and resources will begin to set logistics operators apart from one another.

“At Southgate, we’re proud to be ahead on this, already working in synergy with some of the world’s biggest organisations in key sectors including 3PL, e-commerce, retail, post & parcel and general manufacturing. Through our wealth of equipment, consumables, and servicing expertise, backed up by our design and global sourcing capabilities, we plan to be the reliable single source that keeps their business moving.”

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