The Vendor Consolidation Push

Procurement kicked off a vendor consolidation initiative targeting $5 million in annual savings over 18 months. The plan covers IT, marketing services, and travel.

Analysis identified 147 vendors across categories where 3-5 preferred partners could meet 80% of needs. Exiting vendors will be offboarded through a carefully sequenced 9-month transition.

Risk controls include parallel coverage during transition periods, contract clawback provisions, and business continuity reviews for every terminated relationship.

Some business units pushed back, worried about losing niche expertise. Procurement's answer: preferred partners can sub-contract where needed, with full accountability flowing through master service agreements.