Streamline the supplier flow thanks to vendor consolidation (Commercial portage solution)
In a market with fragmented skills, large groups are working with an increasing number of suppliers. What becomes an obligation to succeed in a shortage market is also a source of limitations when it comes to working directly with them:
- Many suppliers on mission means many suppliers to manage (contractualization, accounting, payment, etc.) So it’s a big cost!
- Subcontracting is also a duty: the fight against hidden work, the duty of social and fiscal vigilance, compliance with French and European legislation. These obligations take time, in addition to posing significant risks to the company in the event of default.
- For these reasons, small suppliers are sometimes excluded by large groups despite their talent. Too small, too recent, independent players, SMEs and startups that are nevertheless real nuggets are forgotten by large groups. Or are only accessible via large IT companies, forced to bring them at a high price to finance their structural costs.
Definition of vendor consolidation (Commercial portage)
The vendor consolidation or commercial portage, consists of using a third party to manage all of the administrative procedures related to the contractualization with suppliers.
The company no longer subcontracts directly with its suppliers, but with a single company, which is responsible for registering the supplier, contracting, assuming tax / social watch and carrying out the various administrative stages for the provision of its service.
In addition, this allows additional services to be offered to suppliers (adjustment of payment periods, access to the platform, etc.)
Warning: Commercial or administrative portage has nothing to do with salary portage, which is a status allowing a consultant to avoid the status of self-employed or business creator. For this, he will have his fees billed by a wage portage company (with whom he will have an employment contract) which will pay them back in salary.