Advantages of Vendor Consolidation

Vendor consolidation can assist your company by ensuring that you do not spend unnecessary hours on staff intervention of and budget management of various vendor solutions.

But what is vendor consolidation? 

Think of it in terms of a company decides to outsource some of its business operations to a vendor. Most often this will be due to cost restrictions or restrictions on knowledge of specific products and or services. This aids companies to focus on their core competencies.

Over time however, more vendors get added as time progresses and soon you have a vendor management taking up time and focus from your employees. The solution to this costly exercise is Vendor consolidation.

With vendor consolidation, businesses seek to reduce the number of vendors they partner with to maximize profitability and eliminate unnecessary time spent managing partnerships.

So instead of choosing to spread your outsourced business resources across a wide array of vendors, your business can focus on a select few or even a single vendor relationship which is easier to manage.

The benefits of consolidating vendors includes:

Staff Resources - Time Saving

Fewer vendors translates into far less vendor management for your team. This enables your team to focus on other projects and responsibilities.

Costs Saving

By consolidating vendors you’ll have more purchasing power to place higher volume orders which can lead to better pricing, lower transportation costs and fewer transactional costs.

Stronger Partnerships

Having fewer vendors can grow your partnerships with the chosen vendors that you do business with. As you will be using their services more dedicatedly, it also gives their team incentive to prioritise their relationship with your business and go the extra mile to ensure that the trust relationship is valued for both parties.

Simplifying the Ordering Process

Your team will be able to integrate faster and with greater ease with regards to ordering systems and processes when you have fewer vendors. Less time will be spent ordering and managing deliveries as you are decreasing the amount of vendor ordering systems your staff have to be trained on.

If your business currently employs a sizeable collection of vendors, consider seeking a single trusted partner or small consolidating your vendors to a select few who can take on all those responsibilities.

If your team is Interested in consolidating your vendor list, you can reach out to our team for more details at 091 388 800 or email our team at sales@totalsource.ie