Kevin,
We have tried (with success) to hold our supplier base at its current level for a variety of reasons. Primarily, most of our suppliers are dependable and well established. We have been doing business with most almost exclusively for a number of years. Adding vendors would add variation to the mix, and I do not like variation! Current quality levels are good, but on occasion delivery is erratic (primarily through miscommunication). I think I have solved this issue through improved information on PO’s, supplying the latest drawings with the PO, scheduled deliveries, clarifying requirements, etc.
As far as adding vendors for the wrong reason, there may not be a problem with buying on price tag alone, but that is not always the case. My biggest gripe is buying the same product from different vendors. At a previous employer, I had a very unpleasant experience with this. While in and of themselves, there was not a lot of difference, but as a group, the yields varied wildly. I tried explaining that by selecting just one vendor, at least the variation could be analyzed, worked on with the vendor and may even become predictable, as a group it could not (lot integrity tracking was not very good). I still do not know root cause (In my bosses’ own words, this problem did not warrant an investigation). As you know, increased variation will ‘nickel and dime you to death,’ if you are not careful.
Regards,
Don