Recap: When Vendor Consolidation is Necessary and How to Properly Implement It

Tim Norton explains why vendor consolidation can be a highly effective initiative, if properly positioned as part of a larger enterprise objective.

vendor consolidation

Among the bleeding-edge technology decisions that enterprises must make when utilizing their external resourcing program, it’s not hard to find functions and organizations that require vendor consolidation (VC).

VC outcomes are not narrowly confined in scope. The primary objective is to amalgamate the number of vendors that an enterprise utilizes in order to get the work done – essentially resulting in fewer bigger fish in a smaller pond.

By executing the same work across a smaller number of vendors, numerous benefits are expected, with the most common being cost reduction. Executing VC is usually an initiative that has structure and predictability, with some vendors having a much higher chance than others at surviving within the enterprise.

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