Vendor Consolidation and Cost Optimisation
Renegotiated vendor contracts and consolidated duplicate services across a multi-brand group, reducing IT operational costs while improving service quality.
Key Results
- Reduced IT spend
- Measurable cost savings through duplicate elimination and renegotiated terms
- Single vendor view
- Centralised register with full visibility of costs, terms, and renewals
- Better service quality
- Underperforming vendors replaced through structured evaluation process
- Procurement process
- Standardised evaluation framework for all new vendor decisions
The Challenge
A multi-brand e-commerce group was running duplicate vendor contracts inherited from acquisitions. Multiple businesses were paying separately for overlapping services - different endpoint protection vendors, separate cloud hosting accounts, redundant SaaS licences, and competing support contracts with no central oversight.
IT spend was significantly higher than necessary, with no single view of total vendor costs. Contract terms varied wildly - some businesses were locked into poor deals while others had leverage they were not using. There was no vendor performance tracking, so underperforming suppliers went unchallenged.
The Solution
Approach
Audited every vendor relationship across all business units, mapping services, costs, contract terms, and performance. Identified overlaps, gaps, and opportunities to consolidate. Built a vendor scorecard framework to evaluate service quality objectively before making consolidation decisions.
Implementation
Consolidated duplicate services onto single vendors with group-level pricing. Renegotiated key contracts using combined purchasing power. Terminated underperforming suppliers after structured evaluation. Built a centralised vendor register with renewal tracking, cost visibility, and performance monitoring. Established a procurement process for new vendor evaluations.
The Results
Related Projects
View allHave a similar challenge?
Let's discuss how I can help you achieve similar results for your organisation.